Game Theory is a mathematical framework for analyzing situations in which players make decisions that are interdependent. This means that the outcome for each participant depends not only on their own choices but also on the choices of others. It is widely used in economics, political science, and psychology to model competitive and cooperative interactions. At its core, Game Theory helps to predict the behavior of individuals in strategic situations, such as auctions, negotiations, and conflicts. By understanding the incentives and potential outcomes, players can make more informed decisions that lead to optimal results for themselves and their opponents.