What Is Game Theory Application?


Vincent White

Game theory is a branch of mathematics that deals with the study of decision-making in strategic situations where multiple players are involved. It has applications in various fields such as economics, political science, psychology, and biology. In this article, we will discuss the application of game theory.

What is Game Theory?

Game theory is a mathematical framework used to analyze situations where multiple players are involved in decision-making. It is based on the assumption that each player’s strategy affects the outcome of the game. The goal of game theory is to understand how players interact with each other and make decisions based on their beliefs and preferences.

Applications of Game Theory

Game theory has numerous applications in different fields. Let’s discuss some of the most prominent ones.


Game theory has revolutionized economics by providing a framework for analyzing market behaviors. It helps economists understand how firms make decisions about pricing and production levels based on their competitors’ actions.

One classic example of game theory application in economics is the Prisoner’s Dilemma. This scenario involves two suspects who have been arrested for a crime and are being questioned separately by police.

If both suspects remain silent, they will receive a light sentence. If one confesses and implicates the other, they will receive a heavy sentence while the other goes free. If both confess, they will both receive a moderate sentence.

The Prisoner’s Dilemma demonstrates how rational individuals may not cooperate even when it is mutually beneficial to do so.


Game theory also has numerous applications in biology, particularly in evolutionary biology. It helps scientists understand how animals make decisions about mating and reproduction based on their competitors’ behaviors.

One example of game theory application in biology is the Hawk-Dove game. This scenario involves two animals competing for a resource (such as food or territory).

A hawk will always fight for the resource, while a dove will back down if challenged. The outcome of the game depends on the value of the resource and the fighting capabilities of each animal.

The Hawk-Dove game demonstrates how animals may adopt different strategies based on their abilities and the value of resources.

Political Science

Game theory has numerous applications in political science, particularly in international relations. It helps policymakers understand how countries make decisions about war and peace based on their adversaries’ actions.

One example of game theory application in political science is the game of chicken. This scenario involves two drivers heading towards each other on a collision course.

The first driver to swerve will lose, but if neither swerves, they will both crash. The outcome of the game depends on each driver’s willingness to take risks.

The game of chicken demonstrates how countries may engage in brinkmanship to achieve their goals, even when it risks catastrophic outcomes.


In conclusion, game theory is a powerful tool for analyzing decision-making in strategic situations involving multiple players. Its applications are wide-ranging and include economics, biology, and political science. By understanding how players interact with each other and make decisions based on their beliefs and preferences, we can better predict outcomes and develop more effective strategies.