Game theory can be said as a branch
of mathematics which deals with the analysis of strategies where outcome of a
participant’s choice depends on the actions of other participants. Game theory
can be applied to contexts in biology, business and war. We can say that this
theory is the study of conflict arises between humans and cooperation.
This creates a language and a formal
structure of analysis for making decisions in competitive environment. To
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Impact of
game theory on Economics and Business-
It brought a revolution in economics
and business by focusing on the serious problems. Game theory turned attention
to market process from steady-state equilibrium. In business, agents must
anticipate the reactions of rivals, customers, investors and employees as in
game theory, every decision maker must anticipate the reaction of those who got
affected by their decision.
There are strategies like the
extension form, the normal form, mixed strategies which can be used when there
is a situation where a decision is needed. These strategies are well defined by
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Games
without conflict-
There are games in which are purely
strategy games without any conflict. Some of them are-
·
Extension of Stag Hunt
·
Guessing two-thirds of the average
·
Choosing a route
·
Finding Nash equilibrium using best response functions
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Why homework
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Homework helps the students to
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When students attempt to do homework they develop a better understanding and
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Too much homework lowers student’s
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Extensive games with imperfect information makes them feel troubled. Improper
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Game theory is a subject which
contains many terms which can be confusing as it is all about taking right
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