Got a tricky question? Receive an answer from students like you! Try us!

Game theory - Essay Example

Only on StudentShare
Masters
Essay
Business
Pages 10 (2510 words)

Summary

The Game theory has gained wide application on a series of fields in the corporate and economic arena today. This is largely as result of its ability to simplify matters and provide scientific backing for understanding complex strategic phenomenon. Despite these obvious advantages, the Game theory is not an all satisfying theory because it is particularly difficult to understand certain aspect strategic behaviour in firms and also the behaviour of economic actors…

Extract of sample
Game theory


Game theory is used to understand competitive situations. These are normally those scenarios in which the chances of a certain outcome largely depend on parties involved and also on a bit of chance. Consequently, the theory focuses on predicting what these respective players will do and hence the most appropriate alternative is chosen by the analyst. There is a particular mathematician who was responsible for this theory and was known as John Von Neumann. (Miller, 2003) Through his work in the mid twentieth century, the expert was able to spearhead several divisions in this interesting theory. Some of the divisions include
In the 2-person versus n-person division, the 2-Person approach largely focuses on the choices available to two players and how to bring out optimum outcomes. On the other hand, in the n - person division, great attention is given to the occurrences and coalitions that are likely to come out of prevailing circumstances. Then again the cooperative division of the game theory largely dwells on choices that are available to parties who have been bound by certain agreements. ...
Download paper
Not exactly what you need?

Related Essays

Business Essay: Organization Theory Synthesis Paper
The nature of management is described in its ability to get people to work together in order to accomplish specific goals and objectives through the use of resources to achieve efficiency and effectiveness. The basic principle in management is the ability to guide people through processes within the organization in order to achieve specific goals (Adair, 2007). Scholars argue that people are what make an organization and thus it is impossible to talk about organizations without looking at people. To manage these people and resources therefore requires the ability to plan, control, organize,…
11 pages (2761 words)
BEER GAME
Furthermore, during cold weather the demand declines drastically thereby increasing the cost of manufacturing the product. Businesses exist in self-sustaining cycles. When the demand for a product changes the prices of other complimentary products some of which are useful in the manufacturing process changes as well thereby compounding the challenges facing a business, the supply of bottled water for example uses such products and services as plastic bottles, branding and transportation among others. The nature of the product makes it susceptible to climatic conditions since they influence the…
3 pages (753 words)
Organisational Theory Essay
This author further adds that feminism must be backed by the need to eliminate that form of inequality. Additionally, feminism must be seen as something that creates a totally different way of looking at the genders in that women are not inferior beings. Consequently, feminism challenges old assumptions about the sexes.…
10 pages (2510 words)
Organization Theory and Design Essay
Its free flowing management style makes it more flexible which encourages entrepreneurship and innovation more than larger organization due. Small organizations could easily act as a large organization with the use of internet. Putting up a website enable itself to take position in the global business arena. Full service global businesses needs strong resource base and sufficient complexity to better serve its global clients. Moreover, financial service companies and multi-product industries are better to act as big company/small-company hybrids.…
13 pages (3263 words)
Portfolio Theory and Investment Analysis Essay
A good investment strategy is one that earns the investor an expected return that is at least equal to or higher than what comparable investments would earn (Sharpe, 1991).…
6 pages (1506 words)
Real Business Cycle theory Essay
This further strengthens the thought that the influence on the business cycle is multifaceted and is caused more due to technological shocks rather than any other factor.…
6 pages (1506 words)