Here is the synopsis of our sample research paper on The Application of Game Theory. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 8 page paper is an explanation and an application of game theory, including a consideration of the normal form and the extended form with the use of a game tree, the Nash equilibrium, sub game perfect and the application of game theory in an extended game. The bibliography cites 4 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEgameapp.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
player has to decide whether or not to enter the market, if there is a decision to enter the market there is a cost of 10. The next stage is
for the incumbent to decide whether to collude or to or to fight with the new entrant. If there is collusion the profit fort he market are 100 and will
be equally shared, but if there is a fight there will be zero profits for the market. In order to answers the questions it is necessary to look at some
basics of game theory upon which the answers will be based to use as a foundation. When looking at Game theory there is the view of the process as
a game, the players are assumed to act in a way that will maximize their utility index, but the outcome will be dependant on the actions of the different actions
undertaken by all of the players, in this case the new entrant and the incumbent (Rubinstein and Osborne, 1994). The game is examined by looking at the players, the different
courses of action that may be taken and the potential outcomes in terms of the utility pay offs (Myerson, 1997). If the market were large and there were a
number f player then the situation may be a degenerate game, where the payoff will only be dependant on the players own actions, as each player simply optimizes their own
utility, but as the number of players reduces there is a greater influence of each player, so in the case of the new entrant and the incumbent there is not
a degenerate game as the results will depend in the actions of the other player (Myerson, 1997). Where a player wants to optimize their utility and they are aware
...