How does game theory use rational choices to explain human behaviour?

In the philosophy of social science, game theory explains human behavior by applying rational choice theory to situations of strategic interdependence. It assumes that individuals are rational agents who possess consistent, logically ordered preferences and seek to maximize their outcomes based on those preferences.12

Unlike models that view individuals in isolation, game theory recognizes that an agent's optimal decision depends on the anticipated actions of others. By defining a "game" with specific rules, available actions, and potential payoffs, researchers can model how individuals navigate social interactions.231

Key aspects of this approach include:
* Reflexivity: Agents choose strategies based on their beliefs about what others will choose, making the individual the primary unit of analysis.1
* Equilibrium: Researchers often look for a Nash equilibrium, a stable state where no player can improve their outcome by unilaterally changing their strategy, given the choices of others.13
* Strategic Modeling: By using tools like payoff matrices, social scientists can predict collective outcomes in diverse scenarios, ranging from economics and politics to evolutionary biology.123

While powerful, this framework is debated for its reliance on narrow definitions of rationality and its tendency to prioritize individualistic logic over cultural or institutional contexts.14