Introduction of Game Theory in Business Decision

In: Business and Management

Submitted By herman1072
Words 2613
Pages 11
Game Theory in Business Decision | | |

Content 1. Introduction -------------------------------------------------------------------- P.2 2. Main Models of Game Theory ---------------------------------------------- p.3-4 3. Nash Equilibrium ------------------------------------------------------------- p.5 4. Dominant Strategy ----------------------------------------------------------- p.5 5. Prisoners’ Dilemma ---------------------------------------------------------- p.5-6 6. Daily Example of Competition of Supermarkets ------------------------ p.7-8 7. Daily Example of Competition of Mobile Market ---------------------- p.9-10 8. Daily Example of Penalty Kick in Football Match --------------------- p.11-12 9. Conclusion ------------------------------------------------------------------- p.13 10. Reference -------------------------------------------------------------------- p.14-15

Game theory is the study of how people behave in strategic situations. Game theory concerns situations in which multiple players make strategically interdependent decisions. The term interdependent means that one person’s behavior affects another person’s well-being. We can make use of game theory on different aspects such as economics, political science and even our daily life. For example, whether TV stations leads to enlarge the market shares on program production usually depends on the subsequent moves of the opponent.

Game theory arises from the analysis of competitive scenarios, the problems are called games and the participants are called player. It can tell us how we should behave in a game in order to produce optimal results and it can be as a theory that describes how people actually behave in a game. There are some elements for analyzing and predicting how humans behave in strategic…...

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