Strategic behavior in markets: How game theory shapes economic decisions
The article discusses how imperfect information in markets can lead to strategic behavior among economic agents. This strategic behavior occurs when agents consider not only their own actions but also the actions of others, and how those actions may affect each other. The study introduces the concept of noncooperative NASH equilibrium, which is a key idea in game theory. This equilibrium represents a situation where no player can benefit by changing their strategy if the other players keep their strategies unchanged.