Game Theory and its Applications in Economics: A Mathematical Perspective

Abstract

Game theory, a branch of mathematics, offers valuable insights into the strategic behavior of rational decision-makers in competitive and cooperative scenarios. The paper analyzes different game-theoretic models starting from Nash equilibrium while examining cooperative and non-cooperative games and evolutionary game theory to explain market behavior patterns and bargaining methods and auction processes. This paper examines the mathematical basis of these models and presents detailed explanations regarding their use in actual economic conditions.