Premium Essay

Game Strategy

In: Business and Management

Submitted By Tkung
Words 2731
Pages 11
Introduction

Nowadays, Game theory plays an important role in modern analysis. This

concept can be applied in plenty fields including business, finance, political science, economics and sports. In business, competition is very intensive hence decision makers should analyse and determine their strategy carefully. Furthermore, they have to consider about their rivals strategies available and actions in the game. Once decision makers know all strategies available, they can apply a game concept, and achieve the proper outcome.

This essay is divided into two parts, in first part, it will be discussed the

general idea of game theory including prisoner’s dilemma which is one of the most known theories. In the second part, the application of game theory will be presented in the example of an oligopoly market. Part one: General discussion of game theory Game Theory is a general study of conflict and cooperation in situations of competition. It attempts to determine the actions that will guarantee the best outcome for the players. Also it helps people to understand the situations...

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