Advantages and limitations of game theory, Mathematics

Advantages And Limitations Of Game Theory

Advantage

Game theory assists us to learn how to approach and understand a conflict condition and to develop the decision making process

Limitation:

1. Businessmen do not contain all the knowledge necessary by the theory of games. Most often they do not identify all the strategies available to them nor do they recognize all the strategies available to their rivals

2. There is a great deal of uncertainty. Thus we always restrict ourselves to those games with known outcomes

3. The implications of the Minimax strategy is, the businessman minimizes the chance of maximum loss. This strategy is extremely conservative, for an ambitious business man.

4. The techniques of solving games concerning to mixed strategies whereas pay off matrices are rather large is extremely complicated.

5. In non-zero sum games, mathematical solutions are not usually possible. For illustration a reduction in the price of a commodity may raise overall demand. This is also not essential that demand units will shift from one firm to other.

 

Posted Date: 2/19/2013 5:50:07 AM | Location : United States







Related Discussions:- Advantages and limitations of game theory, Assignment Help, Ask Question on Advantages and limitations of game theory, Get Answer, Expert's Help, Advantages and limitations of game theory Discussions

Write discussion on Advantages and limitations of game theory
Your posts are moderated
Related Questions
write an equation for a functionthat gives the value in ech table .

Find the greatest number of 6 digits exactly divisible by 24, 15 and 36. (Ans:999720) Ans: LCM of 24, 15, 36 LCM = 3 × 2 × 2 × 2 × 3 × 5 = 360 Now, the greatest six digit

Derivative for the trig function: We'll begin with finding the derivative of the sine function. To do this we will have to utilize the definition of the derivative. It's been wher


How to Multiplying Monomials? To multiply monomials: Step 1: Multiply the coefficients. Step 2: Multiply the like variables by adding their exponents. Step 3: Multiply ans

Let 0 ! V1 !    ! Vk ! 0 be a long exact sequence of vector spaces with linear maps. Show that P (??1)i dim Vi = 0.

with t =[a b c] construct a matrix A = 1 1 1 a b c a^2 b^2 c^2 a^3 b^3 c^3 using vector operations

i dont understand what my teacher disccussing thats why i want to learn for this lesson. i want to ask'' what is the variables?

Product Moment Coefficient This gives an indication of the strength of the linear relationship among two variables. Note that this formula can be rearranged to have di

Consider a student loan of $12,500 at a fixed APR of 12% for 25 years, 1. What is the monthly payment amount? 2. What is the total payment over the term of the loan? 3. OF