What is Game Theory?

Game Theory · Axiom Academy

Discover how mathematics reveals the hidden logic of strategic decisions. Every strategic situation has four essential elements. Click on each to reveal what makes game theory work. Let's explore the classic Prisoner's Dilemma. Click on different cells to see how each combination of choices affects both players. Two suspects are interrogated separately. Should they cooperate with each other or betray? Numbers represent years in prison (negative is bad) Click on each milestone to reveal the key moments in game theory's development. Hover over each field to see how game theory provides insights across disciplines. Game theory converts strategic reasoning into mathematical models we can analyze rigorously, finding equilibria and optimal strategies. Unlike optimization problems with a single decision-maker, game theory handles interdependent choices where your best move depends on others' moves. By identifying Nash equilibria and other solution concepts, we can predict behavior in strategic settings and design better institutions. From auction design to evolutionary biology to AI algorithms, game theory shapes real-world decisions across every domain involving strategic interaction.

This is the written version of the interactive lesson above. See the full Game Theory course.