Strategic interaction refers to the decision-making process where individuals or groups consider the actions and potential responses of others when making their own choices. This concept is often applied in fields like economics, political science, and game theory, where the outcomes depend not only on one's own decisions but also on the decisions of others involved. In strategic interaction, participants aim to maximize their benefits while anticipating the strategies of others. This can lead to various outcomes, such as cooperation or competition, depending on the context and the preferences of the involved parties. Understanding these dynamics is crucial for effective negotiation and conflict resolution.