Definition ∞ Strategic Interactions refer to the interdependent decision-making processes where the outcome for each participant is influenced by the choices made by all other participants. This concept is central to game theory, analyzing how rational agents make choices in situations where their actions affect and are affected by others. In digital systems, these interactions often involve economic incentives. It describes how choices influence collective outcomes.
Context ∞ Within blockchain networks and decentralized autonomous organizations, strategic interactions are crucial for understanding protocol design and participant behavior. News reports often analyze how tokenomics and governance mechanisms are structured to align the incentives of various stakeholders, preventing malicious actions and promoting network health. The study of these interactions helps explain market dynamics and the stability of decentralized systems, informing future protocol developments.
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