ABSTRACT
Game theory assumes that there are two or more players in a decision-making situation and the aim is to devise a plan that maximizes gains and minimizes losses. It offers a rigorous approach to predict what other players (i.e. hospitality organizations) would do in a well-defined situation and what possible results would be. Game theory offers mathematical techniques for problem solving and competitive decision-making through the use of model buildings game theory which is often referred to as 'the prisoner's dilemma can be used in hospitality organizations particularly in decision-making, handling conflicts, competition, cooperation, joint ventures, and strategic alliances between their organization and other companies. By using game theory hospitality firms can systematically examine various combinations of options that can alter the situation in their favor.
