Game theory plays an important role in decoding and understanding markets because it provides a structured way to analyze strategic interactions among rational agents (such as firms, consumers, regulators, or investors).
Here is one reason why game theory is vital in market analysis - Markets often involve players (e.g., firms or consumers) making decisions that affect and are affected by the decisions of others. Game theory helps model these interdependencies, for example - in an oligopoly, the pricing strategy of one firm depends on how its rivals will respond. Read more at www.decoding.market website