Game theory is a branch of mathematics concerned with the analysis of decision-making and strategy. It has applications in economics, biology, and behavioral science. Many seemingly complex situations can be reduced to a relatively simple mathematical game that can be analyzed in a systematic way to find "optimal" solutions.
A classic problem in game theory is the prisoner's dilemma, which, in its original form, is as follows: two co-conspirators are caught and must decide whether to remain quiet or to testify against the other. If both remain quiet, they both serve a 1-year sentence; if one testifies but the other does not, the testifier is released and the other serves a 3-year sentence; and if both testify against one another, they both serve a 2-year sentence. What should each conspirator do? It turns out that the best choice each conspirator can make, given any reasonable distrust of the other, is to testify. Adopting...