game theory
/ˈɡeɪm ˌθɪəri/
Meaning
Game theory is a theoretical framework for conceiving social situations among competing players. In business, it is used to predict how competitors will react to pricing changes, product launches, or strategic alliances. The tone is highly analytical and professional, commonly used in corporate strategy and economics.
Examples
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By applying game theory, the board anticipated the competitor's aggressive pricing strategy.
By applying game theory, the board anticipated the competitor's aggressive pricing strategy.
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We need to use game theory to model how the other firms in the oligopoly will react to our new product launch.
We need to use game theory to model how the other firms in the oligopoly will react to our new product launch.
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Understanding game theory can give negotiators a distinct advantage during complex corporate mergers.
Understanding game theory can give negotiators a distinct advantage during complex corporate mergers.
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The marketing team used game theory to determine whether entering the European market was a viable move.
The marketing team used game theory to determine whether entering the European market was a viable move.
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In a classic game theory scenario, both companies would benefit from cooperation, yet both choose to compete.
In a classic game theory scenario, both companies would benefit from cooperation, yet both choose to compete.
Common Mistakes
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✗ We played a game theory to see who would win the contract.
✓ We used game theory to see who would win the contract.
Game theory is an abstract field of study or analytical framework, not a literal game that you play in a casual sense. Use verbs like 'apply', 'use', or 'model with'.
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✗ The game's theory suggests we should lower our prices.
✓ Game theory suggests we should lower our prices.
Do not make 'game' possessive. The term is a compound noun and should remain 'game theory'.
Related Expressions
Practice
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The executive team applied ___ to predict how their rivals would respond to the merger.
💡 The study of strategic decision-making.
Show answer
game theory
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In ___, we analyze situations where the outcome depends on the actions of all participants.
💡 An analytical framework used in economics and strategy.
Show answer
game theory