Community and Government
What Is Game Theory? How Game Theory Applies to Business
Written by MasterClass
Last updated: Oct 13, 2022 • 4 min read
Game theory is a field of behavioral economics that attempts to predict the way that two or more parties will act in a given situation. Scenarios like “the prisoner’s dilemma,” “the centipede game,” and “the dictator game” are used by economists, political analysts, and businesses to figure out the most likely course of action that people will take.