The Role of Game Theory in Economics and Political Science

Abstract

Game theory provides a mathematical framework for modeling strategic interactions between rational decision-makers.

This paper will examine the applications of game theory in economics and political science, including its use in analyzing market behavior, predicting political outcomes, and designing effective policies. Key concepts such as Nash equilibrium, prisoner's dilemma, and evolutionary game theory will be discussed, along with real-world examples and potential limitations of the game-theoretic approach