It is named after its pioneer John Nash he received the Noble Prize for his contribution to game theory in 1994.

Nash equilibrium is an important concept in game theory. The information set is generally applied in case the game consists of sequential components. It is the pieces of information that are given at any specific time during the game. The payout could be money or other profitable or beneficial items. It refers to the payout that the player gets if he/she arrives at any specific outcome. It refers to the set of actions taken by the player to deal with the various circumstances that may arise in the game. It refers to the people that make the strategic decisions in the game. It refers to certain events or circumstances, wherein the outcome is dependent upon the actions or the decisions of the players involved. It is considered a very powerful medium for forecasting or predicting the output of interactions between different participants or competitors in which the reaction of one depends on the action of others.

From the business point of view, game theory can be utilized by business managers to predict the strategic planning or thought process of their competitors and collaborators. The theory is applicable in different fields, like business, psychology, biology, economics, political science, computers, etc. The best use of game theory is to figure out the optimal solution from the best possible choices through the analysis of costs and benefits to each participant who competes with each other. Collective Bargaining or Negotiation Between Parties

Constant Sum, Zero-sum, and Non-Zero-Sum Games

Example of game theory in real life