Game theory refers to:
A)a plan for the actions that a player in a game will take under every conceivable circumstance that the player might face.
B)a situation in which each player chooses the strategy that yields the highest payoff, given the strategy chosen by the other players.
C)optimal decision making by microeconomic agents.
D)the branch of microeconomics concerned with the analysis of optimal decision making in competitive situations.

Question

Quizplus · Accepted Answer

Game theory is the branch of microeconomics that analyzes optimal decision making in competitive situations. Option A describes a complete plan, which may not always be possible. Option B describes a specific scenario of game theory called the Nash Equilibrium but does not fully encompass the scope of game theory. Option C is a broad statement about microeconomic decision making that does not specifically relate to game theory. Game theory is the branch of microeconomics concerned with the analysis of optimal decision making in competitive situations. While option A describes a strategy plan, option B refers to a Nash equilibrium (a solution concept in game theory), and option C is too broad, as optimal decision-making can occur in many contexts outside of game theory. Option D provides a clear and accurate definition of game theory.

Game Theory Refers To