BUS403: Negotiations and Conflict Management (2016.A.01)

Read section 2 of chapter 1. Game theory has applications for economics, operations research, and psychology, to name a few disciplines. This section gives a basic explanation of game theory, which is the study of optimal decision-making under competition when one individual's decisions affect the outcome of a situation for all other individuals involved. For a classical example, watch the video below on the Prisoner's Dilemma, which you will read about it in many discussions about game theory. How would you describe this in relation to game theory?