How does game theory work?
An example of an AI chatbot conversation about game theory and its principles.
Can you explain what game theory is?
Game theory is a mathematical framework for analyzing strategic interactions among rational decision-makers.
How does it apply to real-life situations?
It helps in understanding competitive behaviors in economics, politics, and social sciences, like in auctions or negotiations.
What are some key concepts in game theory?
Key concepts include Nash equilibrium, dominant strategies, and zero-sum games, which describe different strategic scenarios.
Can you give an example of a game theory scenario?
Sure! The Prisoner's Dilemma is a classic example where two individuals must decide whether to cooperate or betray each other.
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