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Game theory is the process of modelling the strategic interaction between two or more player in a situation containing set rules and outcomes.In a game theory we need at least two players and the potential outcome from the two players .Here the players are the strategic decision makers and there is also an assumption of maximization.It is also assumed that the players will strive to maximize the payoff(outcome).It would ultimately aide in the fundamental analysis of industries,sectors and any strategic interaction between two or more firms.
As here the individual point of view is taken in the decision making process(players)therefore it is included in microeconomics.
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