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While being integrated together conceptually and practically, the literature on game theory in the context of financial markets lacks a cohesive understanding. This study aims to systematically scrutinize and analyse the literature of game theory in the context of financial markets, through a systematic literature review.

A systematic literature-based approach, through the theories, context, characteristics and methodology (TCCM) framework has been applied to 97 articles, extracted and filtered from two databases, Scopus and Web of Science, for a comprehensive review and understanding of the intellectual development in the domain of game theory and financial markets.

The review highlighted the most utilitarian theories within the literature, the context of research in terms of countries and industries, four themes which characterize the literature, as well as the methodologies and research designs used in this research domain. The paper also uncovered certain essential areas that present scope for further research.

While two of the largest indexation databases have been used, some relevant articles may have been excluded due to the restriction of databases and screening criteria, which may lead to the less exploration of several facets of the domain.

Practically, the paper has implications for multiple stakeholders including traders, businesses and governments. For traders, this paper acts as a guide to entering and understanding the dynamics of financial markets. The review also covers decision-making from the perspective of firms, including venture capitalists. This paper would allow firms to understand how game theory can help influence or analyze the strategic interactions between their stakeholders in terms of information disclosure, or consumers and their behavior to stimuli from the firm’s actions.

To the best of the authors’ knowledge, this study is the first of its kind that attempts to comprehensively provide an overview of the literature on game theory in financial markets. In doing so, this study shall help assess the current state of knowledge in the said field and locate gaps in the literature to propose new research directions.