BNET Business Dictionary
Business Definition for: Game Theory
- 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.
Additional Resources
- Micro-Foundations of Congestion and Pricing: A Game Theory Perspective
- 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...
- White papers 2004-07-26
- Using Game Theory to Brew A Bigger Cup of Tea
- There's a great profile (though a bit long-ish) on Barry Nalebuff, economist and chairman of organic beverage company Honest Tea, in this spring's Strategy+Business. The article discusses how Nalebuff used game theory, "a mathematical tool used to anticipate possible scenarios and develop appropriate strategies to deal with them," in his...
- Blog posts 2007-03-09
- Nobel Economics Prize for game theory use in war and peace
- STOCKHOLM AFP — Robert J. Aumann, an Israeli-US citizen, and American Thomas C. Schelling won the 2005 Nobel Economics Prize for using game theory to explain conflict resolution. Using game theory -- interactive decision scenarios -- the laureates focused on why some people and countries manage to cooperate, while...
- Research articles 2005-10-10
- Gaming the Market: Applying Game Theory to Create Winning Trading Strategies. (book reviews)
- Reviewed by Thomas Stridsman In his new book Gaming the Market, economist Ronald B. Shelton provides a new and fresh approach on how to improve your analysis of the markets and your trading decisions using game theory analysis. Simply put, Shelton explains how the marketplace...
- Research articles 1997-12-01
- B-School Blogs: MBA Game Theory, Procrastination, and Shoring Up Your Networking Karma
- Anand Darden confesses to enjoying this unique stage in life, a.k.a. business school, when spending a significant portion of time playing video games is possible, despite being considered a less-than-valuable activity by greater society. In this post, he delves into real game theory and how the elements of strategy and...
- Blog posts 2008-11-24
- Game theory may help Tatas counter CSN.
- Byline: Shishir Prasad Nov. 23--MUMBAI, India -- When the board of Tata Steel meets on Thursday, the foremost issue on the agenda would be to discuss an effective counter strategy to the rival bid of Companhia Siderurgica Nacional CSN for Corus. ...
- Research articles 2006-11-23
- Infrastructure Investment as a Real Options Game: The Case of European Airport Expansion
- 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...
- White papers 2003-11-21
- The Tech Behind the Game
- The NFL may not be the most tech-savvy industry, but these recent innovations are upgrading the way teams take care of business on the field. .imageCaptioned { width:210px; float:right; margin:0px 0 10px 10px; padding:5px 5px 0; background:#edece7; border:1px solid #d4d4d4; } * html .imageCaptioned { display:inline;...
- Articles 2008-12-19
- Economic Theory and the Interpretation of GATT/WTO
- 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...
- White papers 2003-08-01
- Game Theory Should Guide Pricing Strategy, But Be Sure To Pick The Right Playing Field
- The article asserts that the price cut that boosts the sales today will invariably change the industry one compete in tomorrow, and frequently that change is for the worse. The recent experience of a large building products manufacturer illustrates the problem. This company had been consistently profitable as a market...
- White papers 2003-01-01
- Armed Conflict in Colombia: Application of the Game Theory
- The document presents an economic model of the insurgency in Colombia like an economically rational illegal activity. The situation is modelled like a dynamic game, whose protagonists are the government, the rebel leader and the farmers. First, the government determines the level of the military spending. After that the insurgent...
- White papers 2003-01-01
- Game on; Economic development.(Scotland's computer-games cluster)
- Lessons in game theory from Scotland's new cluster SO, LIKE lots of people in economic development agencies across the world, you've been spending festive leisure time playing the latest computer action strategy game--"Grand Economy Boost 3: Cluster City"--and can't seem to make it...
- Research articles 2003-01-04
- Hershey Seen as Cadbury Saviour Only by Playing a Waiting Game
- Cadbury is in danger of casting Kraft as the repellent opportunist and Hershey as its white knight but you can't help wondering whether, if Hershey had bid first, then Kraft would be seen as the rescuer. If a hostile bid is an offer from an opportunist company...
- Blog posts 2009-11-23
- LiveBlogging from HCOMP 2009
- I am now attending HCOMP2009 , the workshop on Human Computation that I previously advertised in this blog . Overall, the workshop was well-attended with more than 40 people in the audience, pretty much filling the room. Below you can find the notes that I was keeping...
- News items 2009-11-05
- John Forbes Nash, Jr
- John Forbes Nash, Jr. Awarded a Nobel Prize in Economics in 1994 for his pioneering work in game theory, John Nash (born 1928) distinguished himself as one of the foremost mathematical researchers and theorists of the twentieth century. Game theory was the subject of Nash's doctoral dissertation at Princeton University....
- Research articles 2005-01-01
- John Forbes Nash, Jr
- John Forbes Nash, Jr. Awarded a Nobel Prize in Economics in 1994 for his pioneering work in game theory, John Nash (born 1928) distinguished himself as one of the foremost mathematical researchers and theorists of the twentieth century. Game theory was the subject of Nash's doctoral dissertation at Princeton University....
- Research articles 2003-01-01
- Can Games Groom Great Leaders?
- Game theory is a well-known idea in economics â€" 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,...
- Blog posts 2007-11-09
- Three Essays On Auction, Bargaining And Contract Theory
- 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....
- White papers 2006-11-20
- Signal Theory Launches Campaign for Pokemon USA
- Wireless News 11-10-2006 Signal Theory Launches Campaign for Pokemon USA WIRELESS NEWS-November 10, 2006-Signal Theory Launches Campaign for Pokemon USA C2006 10Meters - http://www.10meters.com Signal Theory has launched the "EX Dragon Frontiers" campaign for Pokemon USA's...
- Research articles 2006-11-10
- Theoretical struggle.
- The crisis triggered by Northern Rock is a struggle between financial theory and game theory - and game theory is winning, says Mr Bearbull Mr Bearbull The governor of the Bank of England has made it quite clear where he thinks the crisis in...
- Research articles 2007-09-25
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