Word of the Week:
Game Theory

Definition:  Game theory is an economic model for predicting people’s decisions in tricky situations. Game theory is a way to predict how people might behave in certain situations. It can be used to identify possible and probable outcomes as well as which outcome benefits each player the most. You can apply game theory to a variety of situations, from business mergers to gambling.

Key Takeaway:  The theory models behavior by looking at what one party will do given that it can’t predict or control what the other side will do.

Fun Fact: Game theory has been used to model outcomes in nuclear standoffs, like the Cuban Missile Crisis.