Game Theory is a branch of mathematics that deals with the analysis of strategic interactions between rational decision-makers. It is used to study situations where the outcome of an individual's decision depends on the decisions of others.
Game Theory has applications in various fields such as economics, political science, biology, and computer science. It helps in understanding how individuals make decisions in competitive situations and how they can optimize their strategies to achieve the best possible outcome.
One of the key concepts in Game Theory is the Nash equilibrium, where each player's strategy is optimal given the strategies of the other players. This equilibrium represents a stable state where no player has an incentive to change their strategy unilaterally.
Overall, Game Theory provides a framework for analyzing and predicting the behavior of rational decision-makers in strategic interactions, making it a valuable tool in various disciplines.