The article "Game Theory and Their Applicative Importance in the Economic-business Reality: A Valid Tool for ensure the Success of Business Decisions" by Boniello Carmine and Cuozzo Concetta from the University of Salerno explores the application of game theory in economic and business contexts. Game theory, developed in the 1950s, studies strategic interactions between rational agents and has applications in various fields, including economics, business, and computer science.
The authors distinguish between cooperative and non-cooperative games. Cooperative games involve players who can agree on moves and the division of profits, while non-cooperative games involve players acting independently without binding agreements. The article highlights the importance of non-cooperative games in economic applications due to their broader applicability and the lack of enforceable binding agreements in many real-world scenarios.
The article also discusses different types of games, such as strategic or normal form games and extended form games, and their representations. It provides examples of how game theory can be applied to specific economic situations, such as investment risk and entry threats. For instance, a company can use game theory to decide whether to invest in a new product or not, considering the potential market demand and the associated risks.
Additionally, the article covers games with perfect and imperfect information, and differential games, which involve variables that change over time. It emphasizes the importance of game theory in analyzing interactions between subjects and finding equilibrium solutions, such as the Nash equilibrium, which is crucial for achieving business objectives.
In conclusion, the article argues that game theory is a valuable tool for businesses to make informed decisions and achieve success in various economic and business contexts.The article "Game Theory and Their Applicative Importance in the Economic-business Reality: A Valid Tool for ensure the Success of Business Decisions" by Boniello Carmine and Cuozzo Concetta from the University of Salerno explores the application of game theory in economic and business contexts. Game theory, developed in the 1950s, studies strategic interactions between rational agents and has applications in various fields, including economics, business, and computer science.
The authors distinguish between cooperative and non-cooperative games. Cooperative games involve players who can agree on moves and the division of profits, while non-cooperative games involve players acting independently without binding agreements. The article highlights the importance of non-cooperative games in economic applications due to their broader applicability and the lack of enforceable binding agreements in many real-world scenarios.
The article also discusses different types of games, such as strategic or normal form games and extended form games, and their representations. It provides examples of how game theory can be applied to specific economic situations, such as investment risk and entry threats. For instance, a company can use game theory to decide whether to invest in a new product or not, considering the potential market demand and the associated risks.
Additionally, the article covers games with perfect and imperfect information, and differential games, which involve variables that change over time. It emphasizes the importance of game theory in analyzing interactions between subjects and finding equilibrium solutions, such as the Nash equilibrium, which is crucial for achieving business objectives.
In conclusion, the article argues that game theory is a valuable tool for businesses to make informed decisions and achieve success in various economic and business contexts.
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