Game theory, sexes, Prisoners Dilemma
oligopolistic markets. Game theory illustrates that the cooperation between two players, and not competition, yields a more beneficial outcomes to both players. Mainly, games such as Battle of Sexes, Prisoners Dilemma, and so on have been investigated by researchers. However, there have been very few mentions and applications of the Stag Hunt game. The Star Hunt game was a story told briefly by Rousseau. In its sense, it represents a social contract prototype(Skyrms, 2004).
According to Rousseau's story, the Star Hunt Game raises many questions such as an individual's share of a successful deer hunt and values of a hare, will the hunt be successful if all those participating in the deer hunt remained faithful, and is there a chance that two hunters would opt to chase the hare?(Skyrms, 2004).
[...] With this knowledge in mind, we may say that cases of deviations from rationality may exist , but they will be very rare. Decision makers often have bounded rationality. Therefore, the making of predictions to outcomes can be quite possible with knowledge that each player will try to make a decision which maximizes his or her own rewards in the long run(Colman, 1995). It is possible for players in game theory to have an outcome where each one of them is able to make a choice on what is perfect. In such cases, individual pay-offs are not of much importance. [...]
[...] Business scenarios often apply game theories even though the players may not be aware of it. Is it prudent to advertise because the other firm is advertising? Should a company employ more workers because the other firm is doing so? To make the final choice depends on the interests of the firm and of the decision makers. Game theory offers enough unique choices for everyone. References Amos Web LLC GAMETHEORY. [Online] Available at: HYPERLINK "http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=game+theory" http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=game+theory [Accessed 16 June 2012]. Bacharach, M A Theory of Rational Decision in Games. [...]
[...] John Nash, the person who came up with game theory, was a Nobel Prize winning mathematician and economist(Shafer & Pearl, 1990). In the application of game theory in the moves and counter moves of firms in an oligopolistic market, analysis of standard game theory is on the basis of the alternative outcomes which arise when offered the choices that every one of the two players in the game face. It is worthy to note that when a player makes a choice, it definitely affects the result that the other or both of the players get in the end(Colman, 1995). [...]
[...] Camerer, C.F Behavioral Game Theory. Princeton: RusseFoundation. Colman, A.M Reasoning About Strategic Interaction: Solutions Concepts in Game Theory. London: Routledge. Shafer, G. & Pearl, J Readings in uncertain reasoning. San Mateo: Morgan Kaufmann. Skyrms, B The Stag Hunt and the Development of Social Structure. Cambridge city: Cambridge town University Press. [...]
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