Game theory, branch of applied mathematics that provides tools for analyzing situations in which parties, called players, make decisions that are interdependent. This interdependence causes each player to consider the other player’s possible decisions, or strategies, in formulating strategy.

Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents.

Learn what game theory is, how it works, and how it is used in various fields such as economics, business, and psychology. Explore the key terms, scenarios, and examples of game theory and its applications.

This simple game illustrates the essential aspects of what is now called game theory. In it, a game is the set of rules that describe it.

It covers topics such as epistemic foundations, higher order beliefs, bargaining, repeated games, reputation, supermodular games, and global games. It also introduces cooperative solution concepts—Nash bargaining solution, core, Shapley value—and develops corresponding non-cooperative foundations.

Game theory is the study of the ways in which strategic interactions among rational players produce outcomes with respect to the preferences (or utilities) of those players, none of which might have been intended by any of them.

Learn the basics of game theory, the mathematical analysis of decision making in situations with multiple players. Explore examples of games, such as the prisoner's dilemma and the stag hunt, and their applications in various fields.

Explore the mathematical modeling of strategic interactions among rational and irrational agents in various scenarios, from games to market trading. Learn game representation, extensive form, Bayesian games, and more with examples and applications. Offered by Stanford.

This entry provides an overview of the aspects of game theory that are covered in this Encyclopedia, which includes a broad spectrum of topics on static and dynamic game theory.