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Game theory is essentially a theory of decision making where there are two or more decision makers known as players. ...
Principal objective of game theory is to determine what strategies players ought to choose in order to pursue their own interests and how these choices will affect the overall outcome. Formal game theory cannot be experimentally tested since it predicts how people ought to behave rather than how they will behave therefore informal game theory has been tested through empirical research. Game theory has provided a decent framework for explaining and predicting behaviour in a variety of situations.
A simple example of game theory is that two people are walking briskly towards each other; they are heading for a collision unless they make a decision. ...
Game theory purely idealizes real life situations. A real social interaction is too complex to be perfectly understood therefore it is replaced by a simplified abstract version where rules, players, strategies payoffs are clearly defined and from which other properties can be deducted.
Approximate Word count = 786
Approximate Pages = 3.1
(250 words per page double spaced)
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