Game theory

Game theory is a branch of mathematics often used by economists that analyzes situations in which players must make decisions and then receive payoffs.

Definition

According to Principles of Economics by Timothy Taylor (3rd edition),

Game theory. A branch of mathematics often used by economists that analyzes situations in which players must make decisions and then receive payoffs.

According to the Corporate Strategy by Lynch (4th edition),

Game theory. Structured methods of bargaining with and between customers, suppliers and others, both inside and outside the organization. Such structuring usually involves the quantification of possible outcomes at each stage of the strategy decision-making process.