NOTES of game theory and business decisions 2011-7-4

NOTES of game theory and business decisions 2011-7-4 -...

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NOTES 2011-7-4 Game theory and business decisions - A introduction to game theory and its application to business decisions. - Game theory is a way of thinking about strategic sitations HISTORY - Game theory is a product of the 20 th century by John Von Neumann. - John Nash, Robert Selten and John Harsantyi won the Nobel Prize in 1994 for their advances in game theory. (Nash equilibrium) Example: - COKE vs. PEPSI (price/ new productions/ new packaging/ advertising campaigns) - How much money pepsi makes from its cola operations depends on what coke does, and vice versa. This is strategic interdependence manifested in the market. AIM - How to take into account strategic consideration when we have to decide and make choices. - To provide answers to understand and predict how other people and organizations behave when they are in strategic interactions. - To prepare to solve gaming problems as they relate to the business and economics environment today.
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This note was uploaded on 02/28/2012 for the course ECON 111 taught by Professor Aaa during the Summer '11 term at UIBE.

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NOTES of game theory and business decisions 2011-7-4 -...

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