I was surprised when Game Theory’s commonly used in terms of mathematics and economics. When I still had no idea behind the context of Game Theory, I thought that the theory is game related. Like, video games type.
Game theory
studies about human conflict and cooperation within a competitive situation. Game
theory is the science of strategy, or the optimal decision-making of
independent and competing actors in a strategic setting. The proponents of game
theory were John von Neumann and John Nash. Both of them are mathematicians.
Oskar Morgenstern, on the other hand, was an economist.
A language
and formal structure of analysis for making decisions in competitive settings
is created by game theory. This makes the term “game” misleading. Despite the
fact that game theory is applicable to recreational games, the concept of
“game” means any interactive situation in which independent players share rules
and consequences.