How game theory shapes decisions in nature and markets
Game theory, a mathematical framework, uncovers how strategic interactions drive outcomes in economics and biology, explaining everything from market competition to animal cooperation and even influencing AI.
Game theory is a mathematical tool that reveals how strategic choices impact outcomes, from economic markets to animal behavior. Developed in the 1940s by John von Neumann and Oskar Morgenstern, it analyzes situations where participants' success depends on everyone's actions. For instance, it explains why firms compete on pricing or how cooperation can emerge even among selfish individuals.
There's more to this story — open the app to keep reading.
Continue Reading in App
1 more paragraphs · plus a 3-question quiz