Game Theory is the study of strategic decision-making. It involves understanding the interaction between agents in a system, analyzing their behavior and using those findings to identify possible courses of action for achieving the desired outcome. At its core, game theory seeks to address questions such as: What choices are available to an agent? What economic incentives or disincentives are in place? What strategies exist to maximize the benefit to the agent while minimizing the harm to others? Key concepts of game theory include Nash equilibrium, Pareto optimality, and evolutionary dynamics. By examining how agents interact and how those interactions affect the outcome, game theory can provide insight into a variety of real-world scenarios.

See also: exponential growth, ecological economics, neoclassical economics, nuclear power, federal reserve