ABSTRACT
This chapter explains how the game theory framework is used in helping government managers select strategies. The framework includes a set of mathematics-based methods for making strategy decisions based on the expected utility (payoffs or benefits) expected to accrue with each optional strategy. Game theory is a procedure for achieving optimal decision outcomes between two or more options or organizations. In zero-sum games, only one strategy option wins. In non-zero-sum games, the best strategy option is determined by the greatest sum of benefits. The chapter describes different versions of game theory.
