ABSTRACT
The general issue of how to make decisions in a competitive environment is a very common and important one. The fundamental contribution of game theory is that it offers a fundamental conceptual framework in simple situations for formulating and analysing these problems. This chapter begins with the introduction to game theory, describes the types of competitive issues that can be modelled and addressed by game theory, and details the methods for zero-sum games with two players. It then proposes a varied combination of the problems of games theory and provides an appropriate solution to them. All learning outcomes, solved examples, questions, and practice problems are mapped with Bloom’s Taxonomy level (BT levels 1–6).
