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Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
Game Theory
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Game Theory

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Decision Making Using Game Theory (An Introduction For Managers)

Decision Making Using Game Theory (An Introduction For Managers)

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  • 1. Decision Making Using Game Theory(An Introduction For Managers)Iran Bahar Business SchoolCompiled By : Ali Salek
  • 2. Introduction
    Game Theory attempts to mathematically capture behavior in strategic situations, in which an individual's success in making choices depends on the choices of others.
  • 3. GameTheoryEconomists:Theory of Social SituationsPsychologists :?How groups of people interact
  • 4. Basic Constituents
    1 - Players
    2- Actions & Strategies
    3- Rules
    3-1- Sequence
    3-2- Information Structure
    3-3- Outcomes
    3-4- Pay-Offs
  • 5. Types of games
    One-player & Many-player games
    Cooperative & Non-cooperative
    Zero-sum & Non-zero-sum Symmetric & Asymmetric
    Simultaneous & Sequential
    Perfect information & Imperfect information
    Infinitely long games
    Discrete & Continuous games
    Meta games
  • 6. Game Theory
    Games of Strategy
    Games of Skill
    Games of Chance
    Two - Person
    Risk
    Multi - Person
    Uncertainty
  • 7. BranchesGames of strategy
    GameCooperative
    (Players’ interests coincide)
    Non-cooperative Game ((Zero-Sum
    (Players’ interests are conflicting)
    HybridGame
    ((Players’ interests are simultaneously opposed & coincident
  • 8. Economic Theory Branches
    Decision Theory
    - Single player against nature
    - How best acquire information before making decision
    General Equilibrium Theory
    - Deals with trade & production
    - Used in macroeconomic analysis
    Mechanism Design Theory
    . types of rules - Asks about the consequences of different
    - Use Meta game type (development of the rules for another game)
  • 9. Game Theory Application In Management
    Industrial Organization Strategies
    Corporate Finance
    Mechanism & Auction Design
  • 10.
  • 11.
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  • 20. Game Features
    1- Simple representation of a variety
    of important situations.
    2- How an intelligent individual should behave!
    Conflict between the pursuit of individual goals
    and the common good, is at the heart of many games .
    3- Game changes in a very significant way if
    .the game is repeated
    << Game theorists have provided a number of theories >>
    If the game is repeated often enough, the suspects
    !ought to cooperate
    Contribute to the common good
    Behave selfishly
  • 21. The difference between genius and stupidity is that genius has its limits!
    Albert Einstein
  • 22. THE END

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