Abstract This paper reviews the historical development of gametheory, as found in the work of Neumann, Nash, and others. This paper shows how the basic outlines of gametheory are drawn to show how it developed as a theory for decision making. The paper then suggests the historical events driving the mathematicians who developed the theory, as a means of showing how world events were responded to in the work of these men.
From the Paper "In the mid-Twentieth Century, as the world was preparing for, involved in, and coming out of World War II, a number of mathematicians came to hold great importance for their development of an economics model called game theory in which rational (and irrational) actors are pitted against each other in theoretical constructs to determine the choices available to persons living in the world. The most important among this group were John von Neumann and Oscar Morgenstern, who virtually invented the concept of game theory in their book Theory of Games and Economic Behavior, and John Nash, who greatly expanded upon the concepts of game theory to include complex games with multiple players. The applications of game theory were many, but perhaps the most important were found in the struggle of military powers around geopolitical matters."
Abstract This paper analyzes Marxist economics from the perspective of foreign relations and how foreign relations is conducted based on the benefits that one nation can receive in relations at the expense of other nations. This Marxist perspective is compared to modern gametheory and its sub-component, coalition theory in that gametheory's basic assumption of zero-sum outcomes is a Marxist interpretation of capitalism in acceptable guise.
From the Paper "Marxist economics has suffered in stature chiefly due to its being co-opted by the various communist political regimes that relied on its basic assumption upon which to construct their derivative economic models; most commonly of which was the Soviet economic model with its central planning and misconstrued allocation of resources (Wood, 2004). However, Marxist economics were never fully understood by these communist regimes and certainly not faithfully applied. At its core, Marxist economics accurately reflects the innate shortcomings of free market capitalism and the political structure that arise from them. One of the key differences that Marxist economics points out between itself and that of capitalist economics is the valuation of labor or the labor theory of value (Wood, 2004, pp.136-39)."
Abstract This paper explains that traditional financial thinking relies on assumptions of certainty, complete knowledge and market efficiency and in this context, financial decisions should be relatively straightforward. In the real world though, many times what is observed deviates greatly from what would be expected using traditional financial thinking. This paper therefore uses different gametheory models to more accurately explain observed financial decisions dealing with capital structure, corporate acquisitions and initial public offerings (IPOs).
From the Paper "Game theory has made great strides in explaining many of the observed phenomena falling under corporate finance. One example is the capital structure decided upon by a firm's management. Capital structure deals with the firm's decision to raise funds through debt versus equity and what ratio of debt to equity should the firm maintain. Modigliani and Miller in 1958 showed that in perfect capital markets (i.e. no frictions and symmetric information) and no taxes a firm could not change its total value by altering its debt/equity ratio; thus capital structure is irrelevant. However in the real world, capital structure is carefully thought about by every company, and it is in fact not irrelevant because taxes do exist and capital markets are not perfect."
Abstract This paper explains that industrial relations within the context of the British economy and the character of its workforce have long been dominated by the power and presence of its unions. The author points out that, because of the stakes involved in the collective bargaining negotiations, gametheory (GT) and coalition theory, which is a subset of GT, is relied upon to achieve fractional improvements in contract negotiations. The paper relates that gametheory (GT) is most often associated with a zero-sum scenario; however, it also encompasses positive-sum and negative-sum scenarios where a party may gain or win without the necessity of an equivalent loser. The author relates that, because of the necessity to form alliances in order to reach consensus among diverse stakeholders, industrial relations often employ a type of GT known as coalition theory,which examines the nature, reasons and underlying dynamics of these coalitions that form in all the various settings. The paper includes graphs.
Table of Contents
Introduction
GameTheory Industrial Relations and GameTheory Conclusion
From the Paper "Of particular value has been research integrating sender-receiver frameworks that analyze how knowledge is transferred, both symmetrically and asymmetrically, with GT whereby advantages gained through asymmetrical knowledge transfer creates zero-sum advantages for one player or the other in an industrial relations setting such as the collective bargaining platform. This concept is explained in terms of being a signal that one side uses to inform the other of a possible solution, such as concessions that can be made on benefits."
Abstract This paper takes a look at the gametheory, founded by mathematician John von Neumann, and the mathematics, social and behavioral sciences that are involved. This paper also reviews the definition of a game and the fundamental decision theory, a crucial factor pertaining to the gametheory.
From the Paper "A game refers to a strategic situation that involves at least two rational and intelligent individuals called players. The fundamental result of decision theory, which forms the foundation of game theory as well, is that each player's goal is to maximize the expected value of his or her own payoff. These payoffs are measured on some utility scale, which is merely a numeric depiction of each outcome that can be gained through the player's actions. Individuals have preferences that give them the opportunity to rank the outcomes with respect to one other. For each pair of outcomes, a player can say whether he or she likes one better than the other or whether he or she is indifferent about the two.
The logical roots for game theory are in Bayesian decision theory. In fact, game theory can be seen as an extension of the decision theory (Myerson, 1991, p.5). In general, a decision theory is an interdisciplinary area of study for practitioners in mathematics, statistics, economics, philosophy, management and psychology. "
Examines the importance of gametheory in analyzing foreign policy decision-making and outcomes and its compatibility with other foreign policy models and systems.
Abstract Gametheory is the use of mathematical models to predict the outcome of a dispute or interaction between two or more independent actors. It has been applied in a wide range of contexts, including gambling, business and international relations. This essay examines the importance of gametheory when analysing the foreign policy decision-making process. It argues that while simple games such as the Prisoner's Dilemma may not illuminate the process on their own, more complex models can offer a systemic device by which foreign policy can be analyzed more accurately.
From the Paper "Perhaps the most widely recognised game is the Prisoner's Dilemma, which examines the choices faced by two people arrested for the same crime, and observes the likelihood that they would both accuse the other one, and thus both go to jail. When used in foreign policy analysis, it is often used to describe the nature of arms races, or the possibility of nuclear fallout. This is a non-zero-sum game, a game where it is possible for both players to lose, or to win (as opposed to a zero-sum game, where one actor's gain is always equal to another actor's loss)."
Abstract This paper examines gamestheory. Specifically, it focuses on error in non-zero sum games epitomized by Nash's 'prisoner's dilemma'. It outlines the rudiments of non-zero sum games, demonstrates the impact of error and considers ways of reducing it.
Abstract Economists analyze strategic behavior in oligopoly theory by the use of a spectrum of models ranging from the static to the currently more popular and most recent game--theoretical models. This paper shows, however, that it's important to distinguish models or strategic behavior from traditional static models of oligopoly. Moreover, it becomes useful to present a number of strategic gametheory models and particularly those incorporating strategic commitment to gain an appreciation for precisely how economists analyze strategic behavior.
Paper Outline:
Thesis Statement
A Brief Historic Overview
The Courtnet Framework
The Stackelberg Model'
GameTheory - Pros and Cons
Irrevocable Commitment
Asymmetric Information
Bibliography
From the Paper "Game theory has generated a great deal of interest in oligopoly although it has not risen to prominence without controversy. Its detractors argue that game theory has made little contribution to our understanding of oligopoly behavior and it has been likened to the study of Latin. Quoting Fisher, "Latin, like game theory might not be interesting for its own sake but that studying it helps to systematize the way one thinks about language." Fisher also accuses theorists of dealing with every problem in game-theoretic terms including problems that are easier to deal with in other forms."
Abstract This paper provides an analysis of Stanley Kubrick's film, "Full Metal Jacket," and discusses how this film can be understood with relation to the GameTheory. The paper analyzes three characters from the film and considers how their choices in the film illustrate the viability of gametheory. Gametheory is described here as a mathematical formula that asseses outcomes of situations based on people's choices and the author of this paper sees Kubrick's film as an example of how outcomes are effected by particular choices.
Abstract This paper explains the cultivation theory that if a person plays too many games with acts of violence in them, he will be more prone to committing violent acts. The paper relates that much of the publicity surrounding this theory focuses on the negative aspects of the media. The paper then explores how the cultivation theory can be used to produce positive effects and examines how role models can be portrayed in a positive manner to bring about societal change for the better.
Outline:
Part I: Understanding Cultivation Theory Part II: Massive Multi-Player Online Games and Cultivation Theory
From the Paper "Television plays an integral role in US society, perhaps more so than in other countries. To understand the significant role that television plays, one must first take a step back in time, to the days before almost every household in America owned a television. Before television, people told each other stories. Grandparents told stories to children and neighbors told stories about the happenings of the world to each other. Information was passed by word of mouth. Long before television, there was the written word, such as newspapers, and later radio. However, not everyone had access to them. Not everyone could read, particularly in rural areas. Those who had access to newspapers and radio passed on the stories to others through word of mouth."
Abstract Matthew Rabin's model of fairness is based on Geanakoplos, Pearce and Stacchetti's (1989) notion of ?psychological game?, in which payoffs depend on actions and on beliefs about actions. The paper describes how Rabin's model shows how fairness expectations lead to different results than standard theory and demonstrates some general implications of fairness on gametheory and economics. This paper contains a short description of Rabin's model, gives some examples, propositions, proofs and critique.
From the Paper "Suppose that (a1,a2) is a mutual-max outcome. Then both f1 and f2 must be nonnegative, thus reflect a positive regard for each other.
If each player chooses a strategy which maximizes both his own material well-being and the well-being of the other player this must maximize his own utility. In a case of mutual min outcome the f1 and f2 is non positive, thus, f~j(bj,ci)[1+fi(a1,bj)] is non negative. If each player is choosing a strategy which maximizes his own material well-being , this must maximize his utility."
Abstract This paper investigates three of the commonly- used analytical tools and concepts that are used to help effectuate decisions in a business environment. The types of analytical models that are investigated in this paper are probability theory and statistics, utility theory and gametheory. Through investigating these tools in this three- tired framework, the reader has a greater comprehension of how analytical tools can be used to accomplish various reforms within a business or the business sector as a whole.
Abstract This essay delves into the sociological implications of the violence of video games, especially on those who use them the most, namely, impressionable youth. It questions the attractiveness of video games, especially violent ones, and looks at this sort of entertainment in the general context of a more permissive society. The paper shows that, in studying how violent video games affect children and youth, researchers have to be aware of different factors. These include tracing behavioral patterns of the child, but also tracing patterns of behaviors from familial, psychological, and socioeconomic backgrounds.
From the Paper "Therefore, in considering the effects of video games on children, we must also consider why video games are so popular. Why do most children feel that these games are a must-have, even when aspects such as peer-aping mentality and mass market appeal advertisements are taken out of the equation? Children believe that video games are fun. They also offer children a measure of control over their surroundings?something that they cannot do in the presence of parents, guardians or teachers. Children have indicated that video games relieve boredom and stress."
From the Paper "ABSTRACT
One research question was addressed in this study. That question is as follows: "Can the competitive behavior of air transportation companies in the United States market in relation to setting fares be explained as an application of game theory"?
Game theory, as applied in the airfare wars. forecasts how competitors will respond when confronted with certain competitive situations. When formulating business strategy, no company can afford to ignore how competitors will behave. Game theory is based on the premise that in any competitive situation there are factors at work which lend themselves to mathematical representation and analysis. In turn, these representations and analyses will help explain how a result will occur.
The findings of this research indicate that the airfares competition gives the appear.."
Abstract This paper presents a project that attempts to verify the role of strategic level war games in war-planning and to determine, in particular, the potentials of the Doziet strategic war game invented by Dozie Nwanna. The author cites the long history of war games and their impact on actual military strategy and success. The first part of the paper is comprised of a theoretical study of the general role of war games; the second half consists of a comparison of the Doziet war game with other popular war game devices. The author concludes that the introduction of increasingly sophisticated war gaming technology such as Doziet and Grand-Doziet have provided policymakers and military planners with the opportunity to better understand the potential implications of a given set of variables on the outcome of a military conflict.
Outline:
Introduction
Research Objective
Methodology
Contribution to Existing Body of Knowledge
Review and Discussion
Background and Overview
Traditional and Emerging Purposes of War Games Doziet War Game Description
War Game Strategy of Doziet
Physical Aspects of Doziet
Modus Operani of Doziet
The Ultimate Game - Grand-Doziet
Physical Aspects of Grand-Doziet
Potential Applications of the Various Models
Impact of Doziet and Grand-Doziet Technology
Overview of WASP Technology
Current and Future Trends
Conclusion
From the Paper "With a war on terrorism being actively prosecuted on two fronts today, and with the potential for two (or three) more in the future, the U.S. military is stretched very thin indeed. Because resources are by definition scarce, it is important for the armed forces to make the maximum use of the tools and talent that they have available to accomplish their organizational goals. In this regard, the Chief of Staff of the United States Army announced recently the intent to develop a strategy that will transform the Army over the next two to three decades into a force that will remain dominant across the full spectrum of operations while becoming more strategically responsive (Gonzales, Iv, Howe, Johnson, Moore & Pimie, 2001). These objectives, though, are constrained by the increasingly high costs associated with combat training and the need to maintain constant vigilance while pursuing any directly noncombat-related training endeavors such as war games, which are discussed further below."
Tags: war, games, Dozie, Nwanna, Doziet, strategic, war, game, terrorism
