Game theory is:
A)a set of mathematical models which prove it is always better for individuals to cooperate than to compete with one another
B)a set of mathematical models which prove it is always better for individuals to compete than cooperate with one another
C)an analysis of how interdependent actors typically reduce their own benefits when they attempt to use strategy to achieve their goals
D)an analysis of how interdependent actors can use strategy to achieve their goals
E)an analysis of how all of life's decisions can be compared to a poker game

Question

Quizplus · Accepted Answer

Game theory is an analysis of how interdependent actors can use strategy to achieve their goals. It is a mathematical framework that helps us understand the interactions between rational decision-makers. It involves analyzing the choices that each player makes, the strategies they use, and the outcomes that result. The goal is to identify optimal strategies for each player, given the choices of the others. Game theory is widely used in economics, political science, and psychology to understand a wide range of phenomena, from business competition to international conflict.

Game Theory Is