Explain the concept of network theory in game theory.

Economics Game Theory Questions



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Explain the concept of network theory in game theory.

Network theory in game theory refers to the study of how individuals or entities are connected and interact with each other within a network. It focuses on analyzing the structure and dynamics of these connections to understand how they influence strategic decision-making and outcomes in games. Network theory helps in identifying the key players, their positions, and the influence they have on others within the network. It also helps in understanding how information, resources, and behaviors spread through the network, which can have significant implications for game outcomes.