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Glossary of Option Terms: Game Theory

Game Theory

Definition: Game theory is a branch of applied mathematics that studies strategic situations where players choose different actions in an attempt to maximize their returns, similiar to the stock market. This was first developed as a tool for understanding economic behavior.

Game theory has received attention in pop culture in addition to it’s academic interests. Nobel Prize-winning game theorist John Nash was the subject of the 2001 film A Beautiful Mind starring Russel Crowe and was also a theme in the 1983 film WarGames starring Matthew Broderick.

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