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What is the significance of game theory in economics?
Game theory, also known as game theory, is a new branch of modern mathematics and an important part of operational research. According to Professor RobertAumann, who won the Nobel Prize in Economics in 2005 for his contribution to game theory, game theory is a theory to study interactive decision-making. The so-called interactive decision-making, that is, the decisions of all actors (that is, players) are interactive. Everyone should consider other people's decisions when making decisions, and of course, they should also consider others' own considerations. In such repeated consideration, they make decisions and choose the most favorable strategy for themselves.

2. Generally speaking, it is the combination and interaction of different strategies. First of all, you have several different strategies, and so do others. What is best for yourself is not necessarily best for others. You can't simply choose according to your own point of view, so you will choose your own strategy while considering others' choices.

For a simple example, two companies will produce a new product. If two people produce at the same time, the profit is 1. If there is only one production, the profit is 3, their non-production profit is 0, and their non-production profit is 2. Then it is a game for two manufacturers to choose how to produce without knowing each other's strategy.

Games are widely used in production, industry entry, especially monopoly market.