Game theory - Research Paper Example

While doing so, the player must always think about the good mechanism for selling the painting in that given game. When developing such a game, one may have to consider a single shot game in which each of the players is asked to states his or her sealed bid for the painting. Based on the bids presented, the painting will be given or awarded to the most suitable bidder or player in the game. The most straightforward way of awarding the painting would be giving it to the highest bidder and then charging him for the bid.

Teo and Sethuraman however notes that taking such an approach may not been very helpful because the developed situation does not have any dominant strategy solution (881). In such a case, the best strategy for each of the player or bidder would be entirely dependent on what he knows or assumes about the bidding strategy which is going to be used by the other players. When the player takes a wrong assumption about the strategy that is going to be used by other players, then the strategy that they will opt for will not be the best one.

On the other hand, when the player makes the right assumption about the approach that is being used by the other bidders, then his strategy will be the best available one. On this basis, it is quite apparent that deciding on the value which should be placed on the bid by the bidder will always be a very big problem. The complexity of the situation will automatically result in unpredictable behaviour in the game. Regardless of this, there are several available approaches which can be employed to deal with such situations just as it is effectively done in other games which lack a dominant strategy.

One of the main ways through which such situations can be dealt with is the use and the applications of the Vickery auction approach. Vickery mechanism is a very common approach which is used to deal with various gaming situations which do