Our life is full of competition and struggle. There are various types of competitive situations which are commonly seen in our daily life. Theory of Game is deals with a general feature of competitive situation. Game theory is very helpful when two organizations with conflicting object try to make decision. In this type situation, decision made by one side affects the decision made by other side or remaining side and in such situation final result depends on the decision of all sides. Such type of situation can be arising in field of Business, economics, military and industry etc.
Game theory is applicable in wide variety of situation such as two countries planning war tactics, candidates fighting in election etc. Theory of game is completely mathematical theory. The mathematical analysis of competitive situation is based on this is minimax or maximin Criterion. In this criterion player will act so as to maximize his minimum gain.
The game theory has only been capable of analyzing very simple competitive situation. Thus there has been a big gap between what the theory can handle and most actual competitive situation in many field. So the primary contribution of game theory has been its concepts rather than its formal application to solving real problem.