Game Theory is a well known economic theory that won a noble prize in economics. However, on the surface is very simple and easy to understand so I’m going to explain it in a way any red blooded American man can understand.
Assume you and a buddy walk into a bar. At said bar, there are three girls; one babe
and two less attractive, but still hot enough girls:
In this scenario you and you buddy both try to bang the babe (Emily Ratajkowski). One of you may get lucky (very lucky) and bang Emily while the other gets nothing because he pissed off the two less attractive friends not giving them any attention. Or you could cock block each other and both get nothing.
However, if you both agree to not go after Emily and go after girls 2 and 3, you just may both get laid.
Voila, Game Theory. Two seperate parties working in cahoots to not necessarily serve themselves in the best possible way, but to ensure both parties get a desired outcome.