INDEX

1. INTRODUCTION:
Game theory is a branch of mathematics that deals with the study of decision-making
in situations where two or more individuals or groups have conflicting interests. In the field
of finance, game theory is an important tool for analysing strategic interactions between
investors, firms, and other market participants.

In this project, we will explore the application of game theory in finance. We will
start by providing an overview of game theory and its key concepts, including the concept of
Nash equilibrium, dominant strategies, and the prisoner's dilemma.

Next, we will examine how game theory can be applied to various financial scenarios,
such as auctions, bargaining, and strategic investments. We will also discuss how game
theory can be used to model the behaviour of market participants and predict market
outcomes.

Finally, we will review some real-world examples of game theory in finance,

including the use of game theory in mergers and acquisitions, option pricing, and portfolio
management.

Overall, this project will provide a comprehensive understanding of game theory in

finance and its practical applications in the financial industry