How Does Game Theory Solve Games?


Vincent White

Game theory is a branch of mathematics that deals with the study of decision-making in situations where multiple players are involved. It is widely used in economics, political science, psychology, and other fields to understand and predict human behavior in strategic situations. In this article, we will explore how game theory solves games and why it is such a powerful tool for modeling complex interactions.

What is a Game?

In game theory, a “game” refers to any situation where two or more individuals or groups interact with each other and have to make decisions that affect each other’s outcomes. Each player has their own set of possible actions and payoffs (rewards or penalties) based on the actions taken by both themselves and the other players.

Types of Games

There are many types of games in game theory, but some common ones include:

  • Prisoner’s Dilemma
  • Battle of the Sexes
  • Chicken Game
  • Coordination Game
  • Ultimatum Game

Each game has its own unique set of rules and payoffs that determine how players should behave.

Solving Games with Game Theory

Game theory provides a framework for analyzing games and predicting how players will behave in different situations. To solve a game using game theory, we must first define the rules of the game (i.e., the set of possible actions, payoffs, etc.) and then analyze the strategies that each player could use.

Dominant Strategies

One approach to solving games is to look for dominant strategies – those that are always optimal regardless of what the other player does. If there is a dominant strategy for each player, then we can predict what each player will do – they will play their dominant strategy.

Nash Equilibrium

Another approach to solving games is to look for Nash equilibria – situations where no player can improve their payoff by changing their strategy, assuming the other players’ strategies remain unchanged. In other words, a Nash equilibrium is a set of strategies where each player is doing the best they can given what the other players are doing.

Applications of Game Theory

Game theory has many applications in real-world situations, including:

  • Economics – predicting market behavior and pricing strategies
  • Political Science – understanding voting behavior and international relations
  • Biology – modeling animal behavior and evolution
  • Computer Science – designing algorithms for online auctions and network protocols


In conclusion, game theory is a powerful tool for modeling strategic interactions between individuals or groups. By defining the rules of the game and analyzing the strategies that each player could use, we can predict how players will behave and make informed decisions. Game theory has many practical applications in economics, political science, biology, computer science, and other fields.