Theory Of Games (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
- The theory of games is used to analyze the strategic behavior of firms in an oligopolistic market.
- Game theory is applied in economics to study the interactions between different economic agents.
- The theory of games helps economists understand how companies make decisions when the outcome depends on the actions of other companies.
- In the theory of games, the concept of Nash equilibrium is used to predict the outcome of a competitive situation.
- The theory of games is a branch of economics that studies how people make decisions when the outcome depends on the actions of multiple individuals or parties.