game theory \game theory\ n.
A branch of mathematics that deals with strategies for
maximizing gains or minimizing losses in competitive
situations having defined constraints and involving random
factors.
Note: Game theory is used for modelling and analysis of
various decision-making situations such as military
strategy or business policy. The theoretical models
study the interactions among opposing entities called
"players," where different kinds of situation can
arise, for which the probabilities of occurence are
known. Also known is the set of decisions each player
can take. When a player takes a decision he makes a
gain or incurs a loss. Based on the available knowledge
each player tries to adopt a "strategy" so as to
maximize his gains. The entire procedure constitutes a
game.
Syn: theory of games.
[WordNet 1.5]
Source: The Collaborative International Dictionary of English v.0.48
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