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For instance, firms may possibly use game theory to determine the optimal pricing technique based on how they anticipate their competitors to respond to their pricing choices. All round, game theory serves as a beneficial tool for analyzing strategic interactions and selection creating in the context of managerial economics. Games, as studied by economists and true-world game players, are typically completed in finitely a lot of moves. Continual-sum games correspond to activities like theft and gambling, but not to the basic economic predicament in which there are possible gains from trade.

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