Game Theory Essays

Game Theory Application for Lowest Price Guarantee

The game theory is applicable to a host of issues especially in economics. The theory is applicable where there is a multiplicity of decision makers and each player’s action affects or is affected by what the other party does. To cite a specific example, it is worthy examining how firms make production decisions relating to quality, quantity, pricing, etc. the game theory is equally useful in auctions, contract negotiations, and in voting exercises. Literature review Price setting is a difficult…

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Game Theory – Descriptive, Normative or Prescriptive

Going through life we often are surprised by the different ways how people think, make decisions and interact. We believe that most of us are rational human beans (to some extent) and, therefore, our decisions should be grounded in analysis of the situation, our experience and intuition. Therefore, the human mind can be seen as an incredibly complicated machine that runs series of theoretical simulations of possible situations (often subconsciously) to find the most optimal course of action, taking into…

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Game Theory

Game theory happens to be a branch of applied mathematics which is used in social science. Its main objective is to capture behaviors but in this case mathematically in strategic situations where the success of an individual in choice making is largely dependent on the choices that are made by other people. This is the base or the main theme that underlies in the game theory. This is the same theme that is supposed to be articulated in this article….

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