game theory
Say it: GAYM THEE-uh-ree /ˈɡeɪm ˌθɪəri/ · noun
What “game theory” means
Studying choices whose success depends on what others choose.
More precisely: The mathematical study of strategic decisions, where each player's best choice depends on what others do.
When to use it
In economics or strategic discussion, when working out choices whose outcomes depend on other people's decisions.
Similar words
strategic analysis, decision theory
Where it comes from
Developed by John von Neumann and Oskar Morgenstern in their 1944 book.
Quick check
Two businesses each choose prices by considering how the other might respond. What field studies this kind of strategic decision?
game theory or probability theory?
Show the answer
game theory
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