It arises whenever two or more individuals, with different values, compete to try to control the course of events.
Game theory uses mathematical tools to study situations involving both conflict and cooperation.
The players in a game, who may be people or organizations, choose from a list of options available to them - these choices are called strategies. The strategies chosen by the players lead to outcomes , which describe the consequences of their choices. Game theory analyzes the rational choice of strategies - that is strategies that lead to the preferred outcomes. In the next section we present the short history of the subject. We distinguish two different kinds of solutions to such games.