Game theory analyzes strategic decisionmaking from "summary" of The Economics Book by DK
Game theory is a branch of economics that studies strategic decision-making. It is based on the idea that in situations where the outcome of one person's actions depends on the actions of others, individuals will make decisions based on what they expect others to do. Game theory helps economists understand how people make choices in situations where the outcome depends not only on their own actions but also on the actions of others. By analyzing these strategic interactions, economists can predict how individuals will behave in various scenarios and how their decisions will ultimately impact the outcome of the game. One of the key concepts in game theory is the idea of a "game." In this conte...
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