Explained with 3 cases.

1. GAME THEORY AN APPLICATION

4. DOMINANT FIRM GAME

6. Dominant Firm Game Lead Follow Dominant Subordinate Lead Follow (0.5, 4) (1, 8) (3, 2) (0.5, 1)

7. Dominant Firm Game Lead Follow Dominant Subordinate Lead Follow (0.5, 4 ) (1, 8) (3, 2 ) (0.5, 1)

8. Dominant Firm Game Lead Follow Dominant Subordinate Lead Follow (0.5, 4) (1, 8 ) (3, 2) (0.5, 1 )

10. Dominant Firm Game Lead Follow Dominant Subordinate Lead Follow (0.5, 4) (1, 8) ( 3 , 2) ( 0.5 , 1)

11. Dominant Firm Game Lead Follow Dominant Subordinate Lead Follow ( 0.5 , 4) ( 1 , 8) (3, 2) (0.5, 1)

13. Dominant Firm Game Lead Follow Dominant Subordinate Lead Follow (0.5, 4) ( 1 , 8 ) (3, 2) (0.5, 1)

15. NASH EQUILIBRIUM

17. CASE I: APPLICATION OF GAME THEORY IN TWO ADVERTISING AGENCIES

20. The Advertising Game in Decision Tree Form The numbers at the end of each branch, measured in thousand or millions of dollars, are the payoffs. 7,5 L L H L H H B B A 5,4 6,4 6,3

27. CASE II: APPLICATION OF GAME THEORY IN TWO TELEVISION CHANNELS

28. Business Example: Rating War 35, 65 10, 90 60, 40 45, 55 55, 45 65, 35 75, 25 10, 90 40, 60 MTV Channel V Game Show TV Drama Music Program Game Show TV Drama Music Program

29. Business Example: Rating War 35, 65 10, 90 60, 40 45, 55 55, 45 65, 35 75, 25 10, 90 40, 60 MTV Channel V Game Show TV Drama Music Program Game Show TV Drama Music Program

30. PRISONER ’S DILEMMA

32. CASE III: TERRORISM

37. Case : Terrorism 500 guests in Chiang Mai hotel / 300 guests in Phuket hotel Go Chiang Mai Go Phuket The Rival Team Our Team Go Chiang Mai Go Phuket (250, 250) (300, 500) (500, 300) (150, 150)

44. Case : Terrorism 500 guests in Chiang Mai hotel / 200 guests in Phuket hotel Go Chiang Mai Go Phuket The Rival Team Our Team Go Chiang Mai Go Phuket (250, 250) (200, 500) (500, 200) (100, 100)

48. A PRESENTATION BY: Amritanshu Mehra (11DCP008) Kush Aggarwal (11DCP024) Ravi Gupta (11DCP038 )