Game theory

Game theory is sometimes known as interactive decision theory. It deals with situations where people with different (mostly competing) goals try to take into account others' actions in deciding on the optimal course of action. It is a tool to predict and analyse strategic behaviour of agents in the presence of possible conflict of interests. Game theory has wide applications in economics, computer science, biology, political science, sociology and other social sciences. In this chapter I shall discuss different complete information games and some incomplete information games and how game theory can be applied to different fields from that of economics.