What are some real-world applications of game theory?

Can you explain what game theory is?

Game theory is a mathematical framework for analyzing strategic interactions among rational decision-makers.

What are some real-world applications of game theory?

Game theory is used in economics for market analysis, in political science for voting strategies, and in biology for evolutionary strategies.

Can you give an example of game theory in economics?

Sure! The Nash Equilibrium is a key concept where players choose strategies that are optimal given the strategies of others, often seen in oligopolies.

How does game theory apply to everyday decision-making?

In everyday life, game theory helps us understand competitive situations, like negotiating prices or deciding whether to cooperate with others.