a mathematical technique used in operational research to analyze and predict the outcomes of games of strategy and conflicts of interest. Game theory is used to represent conflicts and problems involved in formulating marketing and organizational strategy, with the goal of identifying and implementing optimal strategies. It involves assessing likely strategies to be adopted by players in a given situation under a particular set of rules. It was initially developed by John Von Neumann, who later developed the theory further with Oskar Morgenstern to apply it to economics.
Wiktionary Definition for: Game Theory
cattag mathematics economics A branch of applied mathematics that studies strategic situations in which individuals or organisations choose various actions in an attempt to maximize their returns.
This paper develops congestion theory and congestion pricing theory from its micro-foundations, the interaction of two or more vehicles. Using game theory, with a two-player game it is shown that the emergence of congestion depends on the players' relative valuations of early arrival, late arrival, and journey delay. Congestion pricing...
Many real-life contract agreements actually involve negotiations in which both parties have some bargaining power. However, standard contract theory assumes that the principal holds all of the bargaining power. The literature has typically modeled that with a one-shot game in which the principal makes a take-it-or-leave-it offer to the agent....
This report examines the literature on involuntary, high-consequence, low-probability IHL events like nuclear power plant meltdowns to determine what can be applied to the problem of voluntary, low-consequence, high-probability VLH events like traffic accidents. Five closely related literatures on IHL events are examined: "normal" accident theory, system reliability theory, highly...
This paper argues that there is a systematic tendency for practice to diverge from theory in insurance markets. The paper explores several reasons for the discrepancy between theory and practice. The paper discusses about themes about the operation of insurance markets in theory and practice. It also introduces areas where...
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This article analyzes the optional and strategic features of infrastructure investment. Infrastructure investments generate other investment opportunities, and in so doing change the strategic position of the enterprise. A combination of real options theory and game theory can capture the elusive value of a strategic modification of a firm's position...
The presentation named basic motivation concepts infers about various motivation theories and their frameworks. Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward the attainment of a goal. It mainly discuses the Maslow’s hierarchy of needs, Herzberg’s two-factor theory, reinforcement theory, equity theory...
This paper explores the spiritual dimensions of leadership by setting forth a theory that both integrates and extends the transactional and transformational theories of leadership. Specifically, the authors' proposes that the transcendental theory of leadership set forth in the paper comprises three dimensions of spirituality (consciousness, moral character, and faith)...
Terrorism risk differs in kind from natural catastrophes because of the element of intent. As a consequence, game theory is an important analysis tool. This paper presents a highly simplified model of terrorism risk and uses game theory to develop a probability distribution of losses. Terrorism risk shares features with...
There is no such a thing as an optimal currency regime for emerging economies. As with most political and economic institutions, the best rules of the game depend on country-specific historical circumstances. The best that theory can do to help insti There is no such a...
Game theory is a well-known idea in economics – economists who have helped devise the strategy won the 2005 Nobel prize. It's also important in actual business, especially for how it approaches negotiations (though gametheory.net features in its lecture notes section alone general strategy, competitive and cooperative strategies,...
In this paper we discuss building grounded theory in entrepreneurship research. We describe the history of grounded theory methodology and the location of the methodology within the umbrella of qualitative research methods, also raising broader issues of grounded theory's paradigmatic position. We also provide a description of each phase of...
Built around the theory introduced in "Strategy, Redefined." later termed the Theory of Business Solutions, this presentation highlights another facet of this theory – its unifying character. While the business world is divided between a "you are what you do" perspective and a "you are what you say" perspective...
The highest state of self-actualization is characterized by integrity, responsibility, magnanimity, simplicity and naturalness. Self –actualizers focus on problems external to themselves. This paper discusses three theories namely traditional theory X and theory Y and theory Z. The theories helps the manager in making decision concerning the employee and to...
Though they developed in isolation, the theory of entrepreneurship and the economic theory of the firm can be usefully integrated. In particular, the concept of entrepreneurship as judgment associated with Knight and some Austrian school economists aligns naturally with the theory of the firm. Because judgment cannot be purchased on...
Over the past 50 years, a remarkable degree of trade liberalization has been achieved through GATT/WTO negotiations. This paper describes work that provides a theoretical interpretation of this institution. The paper emphasizes two key features of GATT/WTO: reciprocity and enforcement. The paper also identifies important areas for future research. The...
The "Quantal Theory", proposed herein, is based upon the "Clonal Selection Theory", in which explanation about the specificity as well as diversity of recognition of everything foreign in the environment is given. The "Quantal Theory" is built upon Burnet's premise that after antigen selection of cell clones, a proliferative expansion...
This paper argues that long-run trends in R&D (Research & Development) and TFP Total Factor Productivity are more supportive of fully endogenous "Schumpeterian" growth theory than they are of semi-endogenous growth theory. The distinctive prediction of semi-endogenous theory is that sustained TFP growth requires sustained growth of R&D input. But...
In the world of opportunities, employee motivation has become the key word to resource retention. Present here are a set of slides that talks about the psychological forces that determine the direction of employee behavior, the persistent delay in achieving goals and how motivation theories could do wonders in such...
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