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Game theory: mathematical model of the strategic interaction between rational adversaries.

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Economic situation: Result of a game between two or more players.

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Rewards: Result of the strategies used by a player (Winnings, Peace Treaties, etc.)

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One player's loss is another's gain, this is known as a zero-sum game.

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Forming coalitions allows profits to increase.

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Components of game theory: players, strategies and benefits.

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Strategies: actions that players perform during a game.

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Simultaneous games = dominant strategy, strategy that has the best result.

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Nash equilibrium=strategy equilibrium.

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Nash proposed opening different scenarios to study game theory.