Game theory is the study of how optimal strategies are formulated in conflict. Because of the mathematical complexities of game theory, this module is limited to two-person, zero-sum games. A two-person game allows only two people or two groups to be involved in the game. Zero sum means that the sum of the losses for one player must equal the sum of the gains for the other player. The overall sum of the losses and gains for both players, in other words, must be zero.

Depending on the actual payoffs in the game and the size of the game, a number of solution techniques can be used. In a pure strategy game, strategies for the players can be obtained without making any calculations. When there is not a pure strategy for both players, it is necessary to use other techniques, such as the mixed strategy approach, dominance, and a computer solution for games larger than $2\times 2.$