Game Theory In Business And Economics

Authors: Kareema Tabassum

Abstract: Game theory is an important mathematical and economic tool used for analyzing strategic decision-making among individuals, organizations, and businesses. It helps understand how participants make decisions when the outcome depends not only on their own actions but also on the actions of others. In modern business and economics, game theory has become highly significant in areas such as pricing strategies, market competition, negotiation, advertising, investment decisions, and consumer behavior. The present study examines the applications of game theory in business and economics based on primary data collected from business professionals, commerce students, and entrepreneurs. The study aims to understand the awareness, practical applications, and effectiveness of game theory in business decision-making. Primary data were collected through a structured questionnaire distributed among respondents from different business and educational backgrounds. The collected data were analyzed using percentage analysis and simple statistical interpretation. The findings indicate that game theory plays an important role in competitive business environments and economic planning. Most respondents agreed that strategic thinking, cooperation, negotiation, and competitive analysis are essential for business success. The study further reveals that game theory concepts are increasingly used in marketing strategies, pricing decisions, business negotiations, and risk management. The paper concludes that game theory is not only a theoretical concept but also a practical decision-making tool that improves business efficiency and economic analysis. The study recommends increasing awareness and practical training related to game theory in commerce and management education.

DOI: http://doi.org/10.5281/zenodo.20584942