Game Theory

Business, Legal & Accounting Glossary

Definition: Game Theory




Full Definition of Game Theory


Game theory is a mathematical approach that includes strategic decisions of market agents to predict the probable market situation. To explain in simple terms, game theory is a strategic attempt to study human behaviour, in which an individual’s decision to make choices is depended on choices of others.

Basic Elements of Game Theory

Great mathematician John von Neumann is known to be the founder of game theory. Representation of games is a major element of game theory. Games are situations in which at least a single agent is allowed to maximize his utility through anticipating the responses of one or more agents. The agents are known as players. Each game includes strategies, where strategy is a predetermined situation according to which the player who maximizes profit makes his move.

The games of game theory are represented in varied order according to the strategies. The representation of games is a significant aspect of game theory.


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Definition Sources


Definitions for Game Theory are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th March, 2020 | 1 Views.