Game theory blockchain applications can help you understand how decentralized cryptoeconomic systems work without falling victim to internal disintegration and cheating. Game theory is a study of mathematical models of strategic interaction and decision-making between rational decision-makers. 

While game theory can be both cooperative and non-cooperative, we will be looking exclusively into the latter since a decentralized, cryptoeconomic environment is, by design, a trustless and non-cooperative one.

Your typical game theory model has three components:

• Players: The ones who make all the decisions. Eg. A company’s board of directors.
• Strategies: The decisions that the company will make to further its agenda.
• Payoff: Outcome of the strategies that have been made by the players.

First devised by John von Neumann and Osker Morgenstern in 1944, game theory was a significant breakthrough in the study of oligopoly markets. 

What is Oligopoly?

Market structure is the...