What is game theory?

There are actually several game theories, so I am going to guess you mean the school of
mathematics started by John von Neumann and expanded by people like John Forbes
Nash Jr.

In that case, game theory is the mathematics of conflict. It is an approach to understand

the conflict between two or more entities with opposing agendas.

The theory is concerned with number of players, number of possibilities or options,

number of turns or plays, amount of available information and desires.

There are at least 2 big classes of “games”. One is a zero sum game, where the things to
be won or lost are fixed so what is won by one is lost by the other. In most cases, these
games involve perfect information (like checkers where the board is fully visible) and the
“minimax” move - the minimum of maximum harm can be determined in one turn. Many
times the game is only one turn, like flipping a coin or cutting a deck of cards.

The other major type of game involves multiple turns or plays and is won statistically
over time, like wining 3 out of 5.

When you shop for cable TV and internet service or look for a new car, you are engaging
in a game. The amount of information you have is a major factor. Knowing the possible
outcomes (pay out table) helps you pick your play. Determining if you get multiple
attempts or just one try is important. Finding an option where the other the other party
and you can each arrive at an acceptable arrangement (an equilibrium) may be possible.

A little familiarity with these concepts is handy. Game theory is used in economics,
military planning, statecraft and of course, all manner of commercial transactions.