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What is Game Theory?

Game Theory is a mathematical framework used to analyze and model strategic interactions among rational decision-makers. It explores situations where the outcome of an individual's decision depends not only on their actions but also on the actions of others. Game Theory is applied to various fields such as economics, political science, biology, and computer science to understand and predict behavior in competitive or cooperative settings. The fundamental concepts in Game Theory include players, strategies, payoffs, and equilibrium solutions such as Nash equilibrium, which represents a set of strategies where no player has an incentive to unilaterally deviate from their chosen strategy.

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