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Game theory is a branch of mathematics that studies strategic decision-making in situations where multiple individuals or parties have conflicting interests. It provides a framework for analyzing and predicting outcomes in competitive or cooperative environments.

Game theory involves:

1. Players (individuals or groups)
2. Strategies (actions or decisions)
3. Payoffs (rewards or penalties)
4. Rules (game environment)

Game theory applications:

1. Economics (auctions, oligopolies)
2. Politics (voting, international relations)
3. Biology (evolutionary dynamics)
4. Computer Science (artificial intelligence, cybersecurity)
5. Social Sciences (psychology, sociology)

Key concepts:

1. Nash Equilibrium (optimal strategy)
2. Pareto Optimality (best outcome for all)
3. Prisoner's Dilemma (cooperation vs. betrayal)
4. Zero-Sum Games (one wins, one loses)

Game theory helps us understand:

1. Strategic thinking
2. Decision-making under uncertainty
3. Conflict resolution
4. Cooperation and competition