Game theory is:
A) the study of how people behave strategically under different circumstances.
B) used to predict the winners of only certain types of strategic games.
C) used to evaluate the microeconomic choices that involve probabilities of different outcomes.
D) the study of games of chance like solitaire or betting on horse races.

Question

Quizplus · Accepted Answer

Game theory is the study of how people make decisions and behave strategically under different circumstances, including situations involving competition or cooperation. It can be applied not only in the realm of economics, but also in fields such as political science, psychology, and biology. Option B is incorrect as game theory can be used to predict the outcomes of various types of strategic games, not just certain ones. Option C refers to decision theory, which is related to game theory but not the same thing. Option D is plain wrong as game theory deals with strategic decision-making, not games of pure chance.

Game Theory Is