Question

1.What is the game theory? Why is it important, explain Prisoner's Dilemma and give three examples?

2. Explain Hotelling Law, describing the beach kiosk scenario, give three examples and a conclusion

Answer #1

Q.1. What is the game theory? Why it is important ,explain Prisoner's Dilemma and give three examples.

Answer:-

GAME THEORY :- Game theory is a interactive decision making theory. It is the study of strategies choose by rational individuals. It is like a competition among players who produce optimal decision making regarding pricing and product release.It is assumed that the players in the game are rational and try to achieve their payoffs in the game.

IMPORTANCE:-

As it studies the rational choice of strategies, this conception is common between the rational agents and neoclassical economists.It is the basis of construction of alternative strategies because it results to get the clear scenario of current situation of particular industry or firm and maintains the alternative views on the information available to them. It suggests the result of different strategies work in industry or in market places.

There are many scenarios included in the game theory like prisoner's dilemma, dictator game and many others.

PRISONER'S DILEMMA:-

It is one of the well known example of game theory which basically shows the movements of the different participants or players for a common motive. Generally there are two players who try maximize their profits in comparison to their competitors or other players.

It is shown by a 2×2 matrix game.There are two players and two decision possibilities. 2×2 matrix is known as Prisoner's dilemma. It is an interaction between the social things and individuals.

Following are the key points of this 2 ×2 matrix box game:-

1.) If both players confess,they will each receive a 5 year prison sentence.

2.) If one of them confess and other doesn't, first one will get 3 years prison and second will get 9 years prison .

3.) If second one confesses, and first one doesn't. First will get 10 years prison ,second one will get 2 years prison.

4.) If neither confesses, each will get 2 years in prison.

FOR EXAMPLE:-

1.) Two criminal commit a crime of ATM robbery, and the investigation team or police have not enough evidences against them .There game theory works.Neither prisoners has the means to communicate with each other. Both the criminals put in different cells and same sentence offers to them that if you confess , you will get only 5 years prison and you go to free as main witness.

2.) If prisoner is going to be provoked, he can respond with retaliation ,if unprovoked, he may cooperates.

The nash equilibrium suggests that in a prisoner's dilemma is that nothing is best for them individually but worse collectively. Tit for tat is the optimal strategy for driving the prisoner's dilemma.

Thank you! Please leave a feedback!

Using the concept of game theory and the prisoner's dilemma,
explain why it is better for oligopoly firms to work together than
compete with each other. How can they achieve this outcome?

Game Theory:
John and Dave are playing a game where they only have two
strategies, either to move left or move right. The payoffs from
this game are the points that each player will earn given the
strategies that each play. The higher the points, the higher the
payoffs each player will receive. The normal form representation of
the game is presented below.
DAVE
Left
Right
Left 1,1
0,3
Right 3,0
2,2
John's name label should be on...

What is the law of small numbers theory? Why is it
important?

What is the most important reason to disseminate research?
Explain your rationale and give specific examples from your
experience.

Three types of molecular bonds? Give examples of these bonds in
our daily life. Discuss why each of these bonds is important to
maintaining life?

Question 2: True or false (and brieáy explain why)
(a) In game theory, the equilibrium of any given game is the
outcome that maximizes the players joint well-being.
(b) It is always good to have the option to move Örst because
the Örst-mover can choose his or her preferred outcome for the
game.

5. What are the three commonly used procurement methods? Give
one or two daily examples for each method.
6. Give your own reasons that why logistics emerges from
military logistics management.
7. Which major task do you think is more important in production
management?
8. Explain how ABC inventory control works.

1. Discuss the importance of game theory in corporate finance.
Provide 3 examples in corporate finance.
2. Describe the pecking order theory of capital structure
3. Describe the similarities between corporate social
responsibility, socially responsible investing, impact investing
and thematic investing
- in your own words please!

Explain why political risk factors should be incorporated when
estimating country risk. Give examples of three variables that
should be considered when estimating political risk.

Give 2 original examples examples of nursing phenomena. Explain
why you refer to them as phenomena.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 2 minutes ago

asked 6 minutes ago

asked 6 minutes ago

asked 11 minutes ago

asked 16 minutes ago

asked 22 minutes ago

asked 29 minutes ago

asked 40 minutes ago

asked 44 minutes ago

asked 44 minutes ago

asked 46 minutes ago