How Game theory helps us to make strategic moves and prediction in stock market

Game Theory is a classical example of mathematical modeling that analyzes how people’s decisions or strategies impact each other, even when made in self-interest. The model has a wide range of applications in everyday life, spanning from business to mathematics and economics to the stock market. It has been widely recognized for its relevance across various approaches.

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One interesting application of Game Theory in everyday life is in the stock market. Traders and investors can use its principles to predict market behavior, analyze competitors’ moves, and make strategic decisions.

But how does it work?

Understanding Game Theory

Game theory delves into human behavior and seeks to understand how people act during cooperation and competition. It analyzes situations where individuals or groups (players) make decisions that affect one another.

In simple terms, even if you do your best and create the best possible strategies, the outcome will still be influenced by the decisions of your competitors and opponents.