Types of games, Managerial Accounting

Types of games

Four basic ways in which competitive situations (or games) can be classified are:

(a) Number of Competitors:

In game theory a competitor is characterized as a distinct set of interests and is usually referred to as a person.  Competitors could be individuals, group of individuals, corporation, and an army etc. The smallest no. of competitors is 2 and the situation is referred to as a two-person game. If there are more than two competitors, the resulting many-person competitive situation is called and N-person game.

(b) Nature of the payoff:

Games are also classified with respect to the nature of the payoff, that is, what happens at the end of the game. The distinction in this respect is between zero-sum games and non zero-sum games. If the sum of the payoffs to all players of a game is zero, counting winnings as positive and losses as negative, then, the game is zero-sum otherwise it is non zero sum.  Zero-sum games are strictly competitive games. In a non-zero sum game, the interests of competitors may best be served if they corporate with each other.

c) The amount of information the competitors have:

There are three basic aspects of the game about which the players need some information in order to play

(i) Who their competitors are
(ii) What their competitors can do
(iii) How the outcome of the game will be affected by the actions taken by participants.

Games in which each participant knows the payoff for winning, knows who the competitors are, and knows all the moves the competitors make as soon as they make them are referred to as games with perfect information. Games lacking full information on what competitors can do or on what the outcome of the game will be in certain situations are said to be games with incomplete information. Games with complete but imperfect information may also exist.

d) Strategies:

In game theory a strategy for a particular player is a plan which specifies his action for every possible action of his opponent. It is a complete plan for playing the game in every possible eventuality. Games can be categorized according to the number of strategies available to each player. If player 1 has M possible strategies and player 2 has N possible strategies, then the game is M x N. If the greatest no. of strategies available to any player is finite, then the game is finite and if at least one player has an infinite no. of available strategies, then the game is infinite.

Posted Date: 12/8/2012 2:56:03 AM | Location : United States

Related Discussions:- Types of games, Assignment Help, Ask Question on Types of games, Get Answer, Expert's Help, Types of games Discussions

Write discussion on Types of games
Your posts are moderated
Related Questions
how to journalize entry. purchased $150,000 of raw materials on account, terms of 2/20; n/30

Management Accounting 1) Which is concerned with provision of information to people within the organization to help them make better decisions? Management accounting is concer

Phases of product life cycle The life cycle of a product having of four phases viz., introduction growth maturity decline during introduction phase a product is launched into

Human behavior and budgetary control An important feature of control in business is that control is exercised by managers over people. Their attitudes and response to budgetary

Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.

Under this method, approximation is made of payments and cash receipts in the ensuring period. The dissimilarity of these payments and receipts indicates deficiency or surplus of c

Difference between budgetary control and standard costing Budgetary control The budgets are prepared for the concern as a whole. The budgets are fixed on the basis of p

Explain the terms - maintenance and improvement Maintenance ; under the maintenance function, the management must first establish policies rules directives and standard operat


Welcome to the Fall 2011 version of the comprehensive assignment prepared specifically for Accounting 294. Made up of 3 parts this assignment is meant to fulfil a number of obje