  Game theory is a powerful analytical tool for modeling decision makers
strategies, behaviors and interactions. Act and decisions of a decision maker
can benefit or negatively impact other decision makers interests. Game theory
has been broadly used in economics, politics and engineering field. For
example, game theory can model decision making procedure of different companies
competing with each other to maximize their profit. Here, we present a brief
introduction of game theory formulation and its applications. The focus of the
chapter is non-cooperative Stackelberg game model and its applications in
solving power system related problems. These applications include but not
limited to; expanding transmission network, improving power system reliability,
containing market power in the electricity market, solving power system
dispatch, executing demand response and allocating resource in a wireless
system. Finally, this chapter elaborates on solving a game theory problem
through an example.
