It is also known as Game of Strategy
People play game of strategy in all aspects of life.
1) With parents, siblings, friends, enemies and even with teachers
2) Similar games are played in business, politics, diplomacy and wars.
Whenever people interact to strike mutually agreeable deals or to resolve conflicts, people play game.
Game theory is the study of how people behave in strategic situations.
Strategic decisions are those in which each person, in deciding what actions to take, must consider how others might respond to that action.
Game theory and the Economics of Cooperation
The number of firms in an oligopolistic market is small, each firm must act strategically.
Each firm knows that its profit depends not only on how much it produces but also on how much the other firms produce.
Once you begin to consider how others will react to your actions, you have entered the realm of game theory.
