Economics Game Theory Questions
Rational choice theory in game theory refers to the assumption that individuals or players in a game will make decisions that maximize their own self-interest, based on a rational analysis of the potential outcomes and payoffs. It assumes that individuals are rational and will choose the option that provides them with the highest expected utility or payoff. This theory helps in predicting and understanding the behavior of individuals in strategic situations, where their decisions are influenced by the actions and choices of others.