A dominant strategy in game theory is a strategy that results in the highest payoff for a player, regardless of what the other players do. It simplifies decision-making in strategic interactions, as the player can choose this strategy without considering the opponents' choices.

Dominant Strategy

dominant strategy

Game theory is a mathematical framework used for analyzing strategic interactions where the outcome for each participant depends on the actions of all involved. It provides insights into competitive and cooperative behaviors in economics, politics, and beyond, helping to predict and explain decision-making processes in complex scenarios.

game theory

highest payoff

Decision-making is a cognitive process that involves selecting a course of action from multiple alternatives, often under conditions of uncertainty. It is influenced by various factors such as individual biases, available information, and the decision-making environment.

decision-making

Strategic interactions occur when the outcome for each participant depends not only on their own actions but also on the actions of others, requiring anticipation and adaptation to others' strategies. These interactions are central to game theory and are crucial in economics, political science, and any field where decision-making entities influence each other.

Relevant Degrees

Your Lessons