The key feature that requires the use of game theory to comprehend behaviour is
A) profit maximization.
B) limited information.
C) time.
D) utility maximization.
E) interdependence.

Question

Quizplus · Accepted Answer

Game theory deals with situations where the outcome of one person's decision depends on the decisions made by others. This interdependence among decision-makers is captured by the concept of a strategic game. Therefore, the key feature that requires the use of game theory to comprehend behavior is interdependence. Option A, profit maximization, and option D, utility maximization, may be applicable in certain situations but are not the key feature that necessitates the use of game theory. Option B, limited information, and option C, time, may also be present in strategic interactions but are not as fundamental as interdependence.

The Key Feature That Requires the Use of Game Theory