Game Theory for Applied Economists - Essay Example

Comments (0) Cite this document
Summary
The paper “Game Theory for Applied Economists” will discuss game theory as one of the most famous theories in the modern era. This fact makes this theory very important from the point of view of significance. It is a very formal study of conflicts and the cooperation…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Game Theory for Applied Economists
Read TextPreview

Extract of sample "Game Theory for Applied Economists"

Download file to see previous pages This is very helpful in the formulation of the necessary strategies of the business. EXAMPLES OF GAME THEORY-EARLY CONTEXT AND DEVELOPMENT One of the earliest examples of game theory can be seen in the studies of Antoine Cournot in the year 1838. It studied the example of duopoly in the context of a formal type of game and theoretical analysis. The formal theory for the games was brought into the forefront by the mathematician Emile Borel, who had the suggestion of a formal theory of the games by the year 1921.It, was further developed by the likes of mathematicians like John von Neumann in the year 1928. The field of game theory was established as an entity in its own right after the publishing of seminal book called as Theory of Games and Economic Behavior by the likes of Vo Neumann and the economist known as Oskar Morgenstern (Binmore 114). It also received a lot of fillip from the studies of mathematician John Nash who demonstrated that the finite games have any equilibrium, wherein all the players choose the option that is best for them keeping in mind the action of the fellow players. This is a fundamental unit of the design element that can be seen from the studies of these individuals. This concept of non-cooperative game theory was broadened by the application in the year 1950 and 1960’s. t has always been a central point for discussion. It has been applied to the areas of politics and war. This is one of the centralized concepts of this theory. It has also been accepted in the fields of sociology and physiology. It is also seen in the field of biology. These are some of the common points of the relationship that find mention in the development of theories. It received a lot of attention with the awarding of the Nobel Prize in the field of economics to the likes of Nash, John Harsanyi, and Reinhard Selten. At the period of 1990, it was seen that the game theory was being increasingly used in a number of the fields. It is being prominently used in for the designing of auctions. It is being designed in such a manner that there is the distribution of maximum benefits for the population. It has also developed a level of understanding in terms of the number of the division of electromagnetic spectrum to the telecommunication firms. The usage of this theory has helped in raising billions of dollars in a number of governments. GAME THEORY AND INFORMATION SYSTEMS The level of internal consistency and the basis of mathematics make it one of the primary tools of the modeling and design of many of automated processes of decision making as a part of interactive environments (Fudenberg and Tirole 173). As for example, one of the examples was setting up of efficient rules for the bidding process, websites, and the generation of tamper proof negotiation that is useful in the purchase of communication bandwidth. The automation of strategic choices is necessary for making the choices to be robust in nature. This is helpful in the avoidance of any kind of manipulation in the process of bidding and guards against any kind of abuse form any of the users. The strength of game theory comes from the process of structuring the problems in a way that all the options become clear. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Game Theory for Applied Economists Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Game Theory for Applied Economists Essay Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/management/1402220-game-theory
(Game Theory for Applied Economists Essay Example | Topics and Well Written Essays - 3000 Words)
Game Theory for Applied Economists Essay Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/management/1402220-game-theory.
“Game Theory for Applied Economists Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/management/1402220-game-theory.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Game Theory for Applied Economists

Game Theory

..., hopefully making corollary decisions which would be deemed ration. To such an end, the main goal is to find a certain set of strategies (one per player) that maximizes each player’s payoff. However, such a selection of strategies should probably be rejected if it is not equilibrium. Equilibrium is basically reached when none of the players can attain a higher payoff by way of utilizing a different strategy, given the decisive actions of the other players. The model which has thus far been described is pretty abstract, although, technically speaking, this theory can be applied to a quite huge range of scenarios—and could be thusly applied to warfare, business, sports, or even politics....
12 Pages(3000 words)Research Paper

Applied theory

...? Topic: Applied theory essay Lecturer presentation Article Beyonce set to join headlines at Glastonbury festival This article is about popular culture and it depicts Beyonce Knowles and her intended performance at Glastonbury. Besides Beyonce and her husband Jay Z, the article talks about other popular bands such as U2 and its lead singer Bono and Coldplay, the major artists expected to perform at the summer music festival in Glastonbury (Topping, 2011: 15). From this article, the emergence of the popular culture in form of music can be evaluated by considering theories of industrialization and of cultural studies. Popular culture is a broad term that incorporates common aesthetic or life practices in qualitative and statistical... ). This...
6 Pages(1500 words)Essay

Economics game theory paper

... explored is essentially the same. Here we allowed only the discrete choices of quantity of insurance Q = 0 or 1. In the refined set up, we would have Q . However, the conclusions derived here are likely to sustain in that refined model as well. References: Gibbons, R., (1992) Game Theory for Applied Economists, Princeton University Press. Kreps, D.M., (1990) Game Theory and Economic Modeling, Oxford University Press Varian, H.R., (1997) Intermediate Microeconomics, W.W. Norton and Company, New York... ?The objective of the present paper is to model a situation of a consumer purchasing long term health care insurance using game theoretic tools. Before moving on to the specifics of the model, it may be useful to recapitulate...
5 Pages(1250 words)Essay

Game Theory

...Game perfect theory of equilibrium Perfect game equilibrium is a more sophisticated method of the Nash equilibrium concept; this theory attempts to extend the spirit of Selten’s description of the sub-perfection to the games with imperfect information; in it broadest sense, it looks on the probability or chance of a person to win or lose when doing an assessment. It takes into account of two cases namely; normal form and extensive form as shone bellow (McCain 25). The normal form will always reveal that both (R, 1) and (W, q) which are Nash equilibrium. However, But the previous relies on the unbelievable threat by the player 2 i.e. 2 threatens to play q...
3 Pages(750 words)Essay

Economists

...? Economists-Irving Fisher Affiliation: Outline Introduction 2. Significance of Irving Fisher’s Debt-deflation Theory a. Factors Led to the Great Depression i. Causes of Debt ii. Psychology of Debt b. Stages of Financial Crises and Solutions 3. Fisher’s Plan for the Current U.S Economy a. Fiscal Stimulus b. Reverse Deflation c. Prevention 4. Irving Fisher on Current Economic Policies a. Raising the Debt Ceiling b. Adjust Tax Rates 5. Conclusion Introduction Irving Fisher is among the famous economists in the U.S who experienced the Great Depressed of 1929-33 and proposed relevant solutions using theories and models to solve the prolonged financial crisis (Allen, 1977)....
7 Pages(1750 words)Essay

Game Theory

...? Game Theory Introduction Game theory can be simply referred to a tool for strategic decision making. In a narrow sense,game theory is a mathematical theory which is formed of games termed as zero-sum games. The paper ‘Theory of games and economic behavior (TGEB) published by Von Neumann is generally considered as the starting point of the game theory. According to the most extreme expression suggested by Aumann, “game theory is a sort of umbrella or ‘unified field’ theory for the rational side of social science, where ‘social’ is interpreted broadly, to include human as well as non-human players” (qtd in Schmidt 144). Game theory is mainly applied in areas such as psychology, logic, biology, economics, and political science... ...
5 Pages(1250 words)Research Paper

Game Theory

...The paper explains the history and development of computer games. The paper traces the time when electronic games were first created on mainframe machines and how it gave rise to the gaming industry. The paper also describes the various phases, which marked the development of the industry, games that boosted its popularity among youngsters. Computer games are an intrinsic part of a youngster's lifestyle. With new advancements in technology, these games open a window to a world of fantasy, which enable people to assume various roles and undertake adventures denied to them in real life. However these games have an...
4 Pages(1000 words)Article

Game Theory

...Marriages and Game Theory The Game Theory is a knowledge-based technique used in everyday life as a means of devising strategies. Although the game is mostly used in the field of Economics to ensure that players are able to maximize decisions given a set of choices, the mathematical and logical applications of the techniques of game theory have been applied in other diverse fields and provide useful merits on which different people can make logical and rational decisions. In this respect, the techniques involve situations known as games, where the players are faced with problems on which...
12 Pages(3000 words)Essay

Game Theory

...Question Scott Stevens identifies four major elements that constitute the principles ofthe game theory. These elements are players, actions, information, and payoffs (Tadelis, 2013). In this scene, outlaw Vizzini, talks to the masked man, who challenged him to the game of wits. The masked man is the former lover of Buttercup. By carefully analyzing this speech by Vizzini, we can find that the four elements of the game theory are there. In this speech, there are players, and in respect to Vizzini, the players are a clever man, and a fool. On this basis, this game of wits was between a clever man and a fool. Vizzini was regarding himself...
1 Pages(250 words)Essay

Game Theory

...First Last Number 23 May The Myth of the Folk Theorem INRODUCTION Game theory is one of the decisive theories that considerably supports in strategic decision-making. It is one of the critical models of mathematical models, which supports in rational decision-making and eliminates the possibility of conflicts and encourages cooperation in different fields of practical life. There are two of the decisive branches of Game Theory, which include Cooperative and Non-Cooperative Game Theory (MIT, “Game Theory”). One of the sub theories of Game...
8 Pages(2000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Game Theory for Applied Economists for FREE!

Contact Us