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Game theory is the formal study of situations of interdependence between adaptive agents and the dynamics of cooperation and competition that emerge out of this. A game is a system wherein actors are interdependent in affecting each other and the overall outcomes of the situation. Game theory attempts to understand the structure of these games' incentives to determine the likely or optimal actions of the actors.

Examples of games include the political negotiations between two nations, the interaction of businesses within a market, and the different strategies adopted by creatures in an ecosystem. An understanding of games, their structure and inherent incentives towards cooperation or competition can lead to an increased capacity to design and guide them towards cooperative outcomes.