Game theory: Action and reaction. How does strategy choices interact with the competitors? And why is game theory helpful to predict competitors move?

Strategy choices interact with those of competitors. This suggests that each needs to consider not only their own moves, but also their competitors’ likely or potential counter-moves. Considering how your moves may cause competitors to react has implications for your choices i.e. your strategy. Game theory is particularly important where competitors are strongly inter-dependent (temporarily or permanently) Interdependence exists where the outcome of choices made by one player is strongly dependent on the choices made by others. Here anticipating counter-moves is vital to a strategy’s success Game theory helps reveal which competitor moves are more likely.