ABSTRACT
Game theory is a theoretical framework that attempts to mathematically capture both human and non-human (e.g. computer, animal, plant) behavior during a strategic situation. A strategic situation is a situation that involves the interaction of two or more entities in which the individual’s success depends on the choice of actions by others. A logical behavior would be to attempt to find equilibria between the entities (called the players), i.e., sets of strategies (action sequences) that players will unlikely want to change, since if they do they will most probably benefit less. Therefore, game theory can be used to model situations of interaction and can offer solutions so that mutually agreeable sequences of actions can be employed by the players; game theoretic models make the assumption that the entities make rational choices, i.e., choices that are profitable according to each entity’s own interpretation of profit.
