Game Theory (Noun)
Meaning
(economics) a theory of competition stated in terms of gains and losses among opposing players.
Classification
Nouns denoting cognitive processes and contents.
Examples
- Game theory is used to analyze the behavior of firms in an oligopolistic market.
- The concept of Nash equilibrium is a fundamental idea in game theory, which is used to predict the outcome of a situation in which multiple parties are making decisions.
- Game theory has been applied to a wide range of fields, including economics, politics, and biology.
- The prisoner's dilemma is a classic example of a game theory problem, in which two prisoners must decide whether to cooperate or defect.
- John von Neumann is considered one of the founders of game theory, and his work on the subject is still widely studied today.