ECON 760 (01) - Game Theory

Game theory is the study of strategic interactions. In order for a decision-maker to decide the best course of action, he must take into account the actions of others, including how his own behavior influences the thinking and payoffs of others. Game theory helps us develop an understanding of how people actually behave and how they should be advised to behave in strategic situations. Game theory models conflict and cooperation between rational decision-making agents and has applications in a wide variety of areas, including statistical decision theory, artificial intelligence, economics and business, biology, political science and philosophy.