Game theory

Set of concepts aimed at decision making in situations of competition and conflict under specified rules. Game theory uses games of strategy (e.g. chess) but not of chance (e.g. rolling a dice). A strategic game represents a situation where two/ more participants are faced with choices of action, by which each may gain/ lose, depending on what others choose to do or not to do. The final outcome of a game, therefore, is determined jointly by the strategies chosen by all participants. These are also situations of uncertainty because no participant knows for sure what the other participants are going to decide.