Question

Case study of chapter 3 business environment class 12 busniness

Answer 1

Game theory is a kind of decision theory in which one's alternative action is determined after taking into consideration all possible alternatives available to an opponent playing the similar game, rather than just by the possibilities of various outcome results. Game theory does not insist on how a game must be played but tells the process and principles by which a particular action should be chosen. Therefore it is a decision theory helpful in competitive conditions.

Game is defined as an activity among two or more persons as per a set of rules at the end of which each person gets some benefit or bears loss. The set of rules and procedures defines the game. Going with the set of rules and procedures once by the participants defines the play.