Initially coined by John von Neumann, the game theory is a widely accepted theory in economics. Game theory describes creating a simplified interactive environment, similar to a ‘game’ to aid researchers in developing suitable models.
The prisoner’s dilemma is one of the most sought-after game theories. It was a thought experiment with participants having a zero-sum incentive for harming one another and non-zero-sum incentives for not hurting one another.
Using the game theory, we can also unveil the emotion behind the digital asset marketplace. For instance, with cryptocurrency, there are two types of investors. While one segment is inclined towards holding (long-term investors), others can be categorized as opportunists (short to medium-term investors).