Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Game theory and strategies used to achieve suitable outcomes
In organizational affairs problems, game-theoretic models include a detailed denunciation of situational interactions. The theory incorporates essential points in both pragmatist and radical perspectives on international affairs (DeCanio& Fremstand, 2011). Game theory is used in situations like negotiations, transactions, and elections. The approach is used in predicting the relationship between players and the strategies the business operates.
The negotiations between worker unions and the management over workers' strikes are areas where game theory is used. Organizations such as the doctors, when they strike, the game theory can be used to ensure that the parties arrive at the optimum solution by rising productivity by considering distinct pay and profit approaches that optimize the well-being of employees' leadership. The players' relationship is a strategy one because the players assign a numerical value to each game outcome. In business, the primary aim is profit, but human beings often have more complex purposes than just making money (Binmore, 2007). In every decision that is taken, there is a risk involved. Some threats like the competitive advantage used to affect the results as there are ways in which the business behaves in certain situations.
Game theory is used to analyze dilemmas and ensure they are used to attain competitive advantages. New entrants to a specific market have to ensure that they observe the market first before making decisions to ensure they have a commercial advantage over their competitors (Froeb et al.,2015). It occurs by making them have more income, and the business can easily predict the consequences of their moves.
In conclusion, the game theory is used to analyze situations like negotiating in any business. It comes up with strategies that ensure a relationship with the players to ensure a slow erosion of profits by reducing the costs, differentiating the product from the competitors, and increasing the commercial advantage of the product.
Reference
Binmore, K. (2007).Game theory: a very short introduction. OUP Oxford.
DeCanio, S. J., & Fremstad, A. (2013). Game theory and climate diplomacy.Ecological Economics,85, 177-187.
Froeb, L. M., McCann, B. T., & Ward, M. R. (2015).Managerial economics. Cengage Learning,205-206.
Game Theory: Galatasaray "What economists call game theory psychologists call the theory of social situations, which is an accurate description of what game theory is about. Although game theory is relevant to parlor games such as poker or bridge, most research in game theory focuses on how groups of people interact" (Levine, 2013). Game theory is used in a variety of situations and professions where it is imperative to use razor-sharp
Game Theory Why did Apartheid End? A Solution Developed from the Concept of Game Theory James Michener was a history professor at the University of Texas and a widely read chronicler of different periods of history. Michener was largely a novelist, but his novels were based on factual information that was peopled by fictional, but representative, main characters and some historical figures. In a book called "The Covenant," Michener detailed the history of
They also will exacerbate the deficit and could compromise the economy. There is disagreement over which policy prescription is going to be more likely to damage the economy. The health of the U.S. economy, however, is subject to a lot of variables, and one's own economic situation is only somewhat affected by the state of the U.S. economy. Still, the voter wants to vote in a way that increases
An infinite number of Nash equilibria exist. Given any request, the corresponding strategy of the equilibrium pair simply requests the remainder of the cake. If the first person did not request the entire cake for him or herself, there is a strict Nash equilibrium. If the first player did request the whole cake, the equilibrium is not a strict Nash equilibrium. However, if player 2 makes any nonzero demand, he
So-called n-person games include more than two actors or sides….The central problem is that the rational decision for an individual actor such as a state may be to 'defect' and go it alone as opposed to taking a chance on collaboration with another state actor" as did Israel and the ascent of the Likud after Arafat's refusal of the 2000 peace deal (Beavis 2010). Yet saber-rattling no longer seems
Game theory is a concept that entails formal study of cooperation, conflict and actions taken up by several interdependent agents. Game theory as a concept lays down the structure that facilitates through analysis an understanding of the strategic choices agents adopt[footnoteRef:1]. The earliest conceptualization of game theory is by Cournot in 1838 where the analysis sought to clarify choices and actions taken in a duopolistic market [footnoteRef:2]. Over the years,