ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -“Game theory is the study of how people behave in strategic situations. By ‘strategic’ we mean a situation in which each person, when deciding what actions to take, must consider how others might respond to that action.”

Detailed explanation-2: -Strategic behavior involves the examination of the intermediate case, where there are few enough participants that they take each other into account-and their actions individually matter-so that the behavior of any one participant influences choices of the other participants.

Detailed explanation-3: -Game theory: Study of how people behave in strategic situations.

Detailed explanation-4: -Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents.

Detailed explanation-5: -Game theory is a branch of decision theory focusing on interactive decisions, applicable whenever the actions of two or more decision makers jointly determine an outcome that affects them all.