Game Theory Essays
5 samples in this category
Game Theory attempts to define these situations in mathematical terms and determine what would happen if every player acts rationally. Maybe an equilibrium can be reached which is why we all drive on the same side of the road within a country. Maybe this equilibrium will be worse for all players or maybe everyone will try to be as unpredictable as possible in their actions. In some way Game Theory, it's a way to mathematically model complex human behavior, to...
Introduction It is defined as a means of mathematical analysis of conflicts of interest to reach the best possible decision-making options under the circumstances given to obtain the desired results. Its applications in many fields of social science, as well as in logic and computer science. In the beginning, it was handles zero-sum games, in which one person's gains result in losses for the other entrant. Nowadays, game theory applies to a wide domain of behavioral relations, and is now...
Game theory is a mathematical technique used to interpret the behaviour of interdependent decision makers who use strategic behaviour. It assumes that players are rational and that payoff matrices are predetermined and known to everyone. Most of these assumptions do not hold true in real life. Managers may be motivated by other factors when making strategic decisions like growth and revenue maximization or their corporate social responsibility. Additionally, it is hard to achieve complete information in real life which is...
What is conflict? This is a situation, in which the interests of the parties collide and a conflict of interests occurs. Each of the participants wants something, not what others want. How game theory can be used? Game theory is a mathematical theory that is tightly connected with the social sciences. Modern socio-economic studies are based on game theory, but game theory can be useful for every person. Game theory enters into the life of each of us unnoticed. The...
Abstract This paper covers game theory at a basic level and looks at an elementary application of game theory, the prisoner’s dilemma. The paper goes on to use the example of competitive pizza shops and how game theory can help to make the best business decisions when it comes to pricing slices of pizza. This is an interesting topic that is quite new in the mathematical world. Since John von Neumann and Oskar Morgenstern invented the idea in 1944, there...