Startup Terms Glossary
What is Game Theory?
Game theory is the study of strategic interaction using set rules and outcomes. It helps people analyze a presented situation and determine the best strategy for moving forward in a driven way.
Game theory is considered by some as the ‘science of decision making’ and is often used in business to assist in dealing with competition and conflict.
Game Theory Examples:
Examples of important game theory concepts include:
- Example 1. Nash equilibrium
- Example 2. The prisoner’s dilemma
- Example 3. Zero-sums game
- Example 4. Duopoly
- Example 5. Chicken game
This article also talks about how a startup or entrepreneur can use game theory.
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