Economics Game Theory Questions
Bargaining in game theory refers to the process of negotiation between two or more parties to reach a mutually beneficial agreement. It involves strategic decision-making, where each party tries to maximize their own payoff while considering the actions and preferences of the other parties involved. Bargaining typically occurs in situations where there is a conflict of interest or disagreement, and the outcome is uncertain. Game theory provides a framework to analyze and understand the strategic interactions and outcomes that arise from bargaining situations.