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Game Theory Is A Separate Term Paper

If the first player did request the whole cake, the equilibrium is not a strict Nash equilibrium. However, if player 2 makes any nonzero demand, he or she will still receive the same amount, nothing, because any nonzero demand will push the total sum of demands greater than the amount of cake available. If both players act to maximize expected utility, each should demand half. Intuitively, this appears not only as the rational thing to do but also as the "fair" thing to do. Lastly, a game can be devised where there is cooperation with incomplete information. This entails considering how different players should compromise and how a single player should compromise between the goals of his or her true type and the goals of his or her other possible types, to maintain an inscrutable facade in negotiations.

The above noted the actual examples of types of games. A more important question is how they can be used to an advantage. Business, for example, are using it to determine how competitors will act. Managers frequently play games both within and outside the firm with competitors as well as customers and regulators. Learning more about game theory can enhance an individual's ability to think strategically in complex, interactive environments.

It is hoped that with such models of social interactions will further not detract from communication and that successful players learn to synchronize their moves with the actions of others....

People caught up in conflict can reconceptualize the situation to relieve tension. Anxious participants mentally alter the numbers so that they are in effect responding to a matrix different from the one they were given. In the prisoner's dilemma, for example, there could be a transformation that regards good things happening to the other man as of equal value to benefits for self. Systems theorists would say that the individuals have redefined the system so that it now includes the other person.
References Cited

Kuhn, H.W. (1997) Classics in Game Theory. Princeton: Princeton University Press.

Myerson, R.B. (1991) Game Theory.

Cambridge, MA: Harvard Press.

McCain, R.A. (2003) Game Theory: A Non-technical Introduction to Analysis of Strategy. Website retrieved 19 October, 2005.

http://william-king.www.drexel.edu/top/eco/game/game.html.

Ross, Don "Game Theory," The Stanford Encyclopedia of Philosophy (Winter 2005 Edition), Edward N. Zalta (ed.), Website retrieved October 19, 2005 .

von Neumann, J, & Morgenstern, O. Theory of Games and Economic Behavior.

Princeton: Princeton University Press, 1947.

Wikipedia. "Bayes Theorem. Website retrieved October 17, 2005. http://en.wikipedia.org/wiki/Bayes'_theorem

Wikipedia. Nash Theory. Website retrieved October 17, 2005

http://en.wikipedia.org/wiki/Nash_equilibrium

Sources used in this document:
References Cited

Kuhn, H.W. (1997) Classics in Game Theory. Princeton: Princeton University Press.

Myerson, R.B. (1991) Game Theory.

Cambridge, MA: Harvard Press.

McCain, R.A. (2003) Game Theory: A Non-technical Introduction to Analysis of Strategy. Website retrieved 19 October, 2005.
http://william-king.www.drexel.edu/top/eco/game/game.html.
Ross, Don "Game Theory," The Stanford Encyclopedia of Philosophy (Winter 2005 Edition), Edward N. Zalta (ed.), Website retrieved October 19, 2005 <http://plato.stanford.edu/archives/win2005/entries/game-theory/>.
Wikipedia. "Bayes Theorem. Website retrieved October 17, 2005. http://en.wikipedia.org/wiki/Bayes'_theorem
http://en.wikipedia.org/wiki/Nash_equilibrium
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