What aspect of decision-making does game theory analyze?

Game theory primarily analyzes strategies among competing players. It provides frameworks for understanding how individuals or groups make decisions when their outcomes depend not just on their own actions but also on the actions of others. This interaction often occurs in competitive scenarios where the players have different preferences and objectives, requiring them to consider not only their strategies but also the potential strategies of their competitors.

The essence of game theory lies in its ability to model situations where entities must choose their actions while anticipating the decisions of others. This includes forming strategies that might involve cooperation or conflict, depending on the game structure. Thus, the analysis of competitive behavior and strategic planning is central to the study of game theory.

The focus on interactions among competing players distinguishes game theory from other decision-making models that might look solely at cooperative settings, random variable effects, or historical analyses that do not involve competition.