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Game theory

Game theory

Branch of mathematics focused on strategic decision making

A game is any set of circumstances that has a result dependent on the actions of two of more decision-makers (players).



As with any concept in economics, there is the assumption of rationality. There is also an assumption of maximization. It is assumed that players within the game are rational and will strive to maximize their payoffs in the game. 



The number of players in a game can theoretically be infinite, but most games will be put into the context of two players. One of the simplest games is a sequential game involving two players.



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