• Dr. P J Ravindra Nath
• Mr. Mantha Srikanth
• Mr. M. Suresh Babu

Game theory has been of importance on many fields of the social sciences since its rise to prominence more than fifty years ago (Lim, 1999). The subject first outlined zero-sum games, such that one person's gains are exactly equal net losses of the other participant. Turocy & von Stengel (2001) define game theory as a formal study of decision-making where several players must make choices that potentially affect the interests of other players. Turocy van Stengel (2001) highlighted that the game theory was first presented on the study of duopoly by Antoine Cournt in 1838. However Camerer (2003) discovered that the first known discussion of game theory occurred in a letter written by James Waldegrave in 1713. Game theory was further put on the spotlight by John von Nuemann in 1928 in a study of “theory of polar games”. Lim (1999) also argued that game theory was firmly entrenched by von Neumann and Morgenstern in the realm of economics by providing a whole new way of looking at the competitive process, through the eyes of strategic interactions between economic players. More emphases on game theory was observed in 1949 when John Forbes Nash published his thesis titled Non Cooperative games, that’s where the concept of equilibrium point (also known as Nash Equilibrium) was introduced (Hyksova, n.d.). Kerk (n.d.) pointed out that Nash equilibrium is based on the principle that the combination of strategies that players are likely to choose is one in which no player could do better by choosing a different strategy given the strategy the other chooses. Camerer (2003) stated that game theory is generally used in economics, political science, and psychology, as well as logic and biology. Game theory applies in many studies of competitive scenarios, therefore the problems are called games and the participants are called players. A player is defined by Osborne (2002) as an individual or group of individuals making a decision. Camerer et al., (2001) went on to outline the assumptions of the game theory as that, all players form beliefs based on analysis of what others might do, choose a best response given those beliefs, and adjust best responses and beliefs until they are equal. Camerer et al., (2001) emphasized that these assumptions are sometimes violated, meaning that not every player behaves rationally in difficult situations. Osborne & Rubinstein (1994) also highlighted that the basic assumption that motivates the game theory is that decision-makers are rational and they reason strategically. Osborne &Rubinstein (1994) further stated that decision-makers are aware of their alternatives and chooses their action deliberately after some process of optimization.

Pure Strategy, Mixed Strategy and Games.

"New Applications on Game Theory", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.7, Issue 6, page no.1251-1257, June 2020, Available :http://www.jetir.org/papers/JETIR2006516.pdf

"New Applications on Game Theory", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.7, Issue 6, page no. pp1251-1257, June 2020, Available at : http://www.jetir.org/papers/JETIR2006516.pdf