Why Game Theory is Not About Competition

The video explores economic theory, focusing on the assumption of rational decision-making. It introduces game theory, highlighting its application in economics and beyond. The prisoner's dilemma is used to explain competitive game theory, while cooperative game theory is discussed in the context of trade agreements. The limitations of game theory in real-world scenarios are also addressed, emphasizing the complexity of human decision-making. The video concludes by underscoring the importance of understanding game theory, despite its challenges.

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