Game theory plays an important role in decoding and understanding markets because it provides a structured way to analyze strategic interactions among rational agents (such as firms, consumers, regulators, or investors).

Here is decode and encode meaning one reason why game theory is vital in market analysis - Markets often involve players (e.g., firms or consumers) making decisions that affect and are affected by the decisions of others. Game theory helps model these interdependencies, for example - in an oligopoly, the pricing strategy of one firm depends on how its rivals will respond. Read more at www.decoding.market