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A different use of game theory in managerial economics is in analyzing pricing approaches. For instance, firms may perhaps use game theory to identify the optimal pricing strategy primarily based on how they expect their competitors to respond to their pricing choices. All round, game theory serves as a helpful tool for analyzing strategic interactions and selection generating in the context of managerial economics. Games, as studied by economists and genuine-globe game players, are frequently completed in finitely many moves. Continuous-sum games correspond to activities like theft and gambling, but not to the basic financial situation in which there are possible gains from trade.