To analyze such a game, one puts oneself in the other player's shoes, recognizing that the opponent, being clever, is doing the same. When this consideration of the other player's moves continues indefinitely, the result is an infinite regress. Game theory provides the tools to analyze such problems. Game theory can be used to analyze a wide range of strategic interaction environments including oligopolies, sports, and politics. Many product failures can be attributed to the failure to consider adequately the responses of competitors.
Game theory forces one to consider the range of a rival's responses.
The decision makers in the game. Choices available to a player. Rules that tell a player which action to take at each point of the game. The results that unfold, such as a price war, world peace, etc. An equilibrium is a stable result.