...GAME THEORY & ASYMMETRIC INFORMATION LITERATURE REVIEW NATHALIA PALOMINO ID# 0501605 MARCH 1, 2014. FACILITATOR: SHELLEY WHITTLE Introduction This paper will firstly address game theory, Prisoners Dilemma which is a very prominent game and Bargaining. Asymmetric Information is also discussed along with a few examples of how asymmetric information relates to the business environment. The writer gives the reader a basic understanding of game theory and asymmetric information uses in a logical manner. As many opinions are combined to critically analyse the aforementioned. Game Theory A definition of Game Theory or something that appears to be a definition may be applied as such: An analytical or mathematical approach of examining strategic interaction when dealing with competitive situations in business decisions. As Keat, Young & Stephen (2014) did not give a clear definition of Game Theory. This definition stated business decision however, Martin (1978) stated that Game theory has proved useful in only war and economic. He states, “I see that at least three ways in which game theory has proved ‘useful’. First, it has led to practical advice on tactical decision-making in certain well defined situations, especially in military areas involving missile tracking and similar task (where the theory of differential games has led to results equivalent to control theory). Second, it has provided an occupation and amusement for thousands of government bureaucrats...
Words: 2354 - Pages: 10
...Chapter I THE PROBLEM Introduction Millions of people play online games around the world, in April 2013 it was estimated that 671 million people worldwide played online games. Almost a quarter of these individuals did so on a daily basis and that number as a percentage of total online gamers continue to grow (comScore, 2013). An online game is a video game played over some forms of computer network, using a personal computer or video game console typically on the Internet. This network is usually the Internet or any equivalent technology; but games have always used whatever technology was current: modems before the Internet, and hard wired terminals before modems. One advantage of online games is the ability to connect to multiplayer games in which thousands of people can participate in a shared world and can return to that world day after day to see it grows and changes in response to one’s own actions, although single-player online games are quite common as well. A second advantage of online games is that a great percentage of games do not require payment. Third, that is worth noting, is the availability of a wide variety of games for all types of game players. While it may be true that online games are perceived to have advantages to players, their effect on behavior is worth looking into. As defined by McLeod (2008), human behavior is experienced throughout an individual’s entire lifetime. It includes the way they act based on different factors such as genetics, social...
Words: 2639 - Pages: 11
...GAME THEORY Game theory has found its applications in numerous fields such as Economics, Social Science, Political Science, and Evolutionary Biology. Game theory is now finding its applications in computer science. The nature of computing is changing because of success of Internet and the revolution in Information technology. The advancement in technologies have made it possible to commoditize the components such as network, computing, storage and software. In the new paradigm, there are multiple entities (hardware, software agents, protocols etc.) that work on behalf of different autonomous bodies (such as a user, a business etc.) and provide services to other similar entities. Internet has made is possible for many such geographically distributed antonymous entities to interact with each other and provide various services. These entities will work for their respective owners to achieve their individual goals (maximize their individual payoffs), as opposed to obtaining a system optima (that is socially desirable). This results in an entirely different paradigm of computing where the "work" is performed in a completely distributed/decentralized fashion by different entities where the primary objective of each entity is to maximize the objective of its owner. Therefore, it is important to study traditional computer science concepts such as algorithm design, protocols, and performance optimization under a game-theoretic model. This course aims to provide a basic understanding...
Words: 2068 - Pages: 9
...Class 3: Transshipment problem Formulation of LP model, different variations (unbalanced case, combining with production scheduling, multi-modal and multi-SKU transportation), Conversion of transshipment model into classic transportation model. Text: BRS 5.4, 5.5 Class 4: Assignment problem Binary ILP formulation, solution by Hungarian method Text: BRS 5.6 Class 5: Network models Shortest path problem, Minimal spanning tree Text: BRS 5.8, 5.9 Class 6: Game theory Introduction to game theory: Types of game, Two person zero-sum game, concept of saddle point, dominance rule Text: WW 14.1, 14.2 Class 7: Game theory (contd.) Mixed startegy, Linear programming formulation Text: WW 14.2, 14.3 Class 8: Mid-term Test Class 9: Markov chain Introduction to stochastic processes, markov chains, transition probability matrix, steadystate probabilities. Text: Handouts and WW 17.1, 17.2, 17.3 Class 10: Decision theory Decision making under uncertainty, Decision criteria, Decision Tree Text: BRs 8.1, 8.2, 8.3, 8.4, 8.6 Class 11: Decision theory (contd.) Decision making under risk, EVPI, EVSI Text: 8.5, 8.8, 8.9 Class 12: Travelling Salesman Problem Optimization model formulation, solution approaches, Branch and bound algorithm Text: handouts and WW 9.6 Class 13: Case Study / Revision Class 14: Case study / Revision Software packages: MS Excel Text book 1. (BRS) Balakrishnan N, Render B, Stair Jr. RM (2007) Managerial decision modelling with spreadsheets (2nd Ed.), Pearson education. 2...
Words: 354 - Pages: 2
...Customized Learning Theory Eric L. Maddox Liberty University According to Slavin (2012), Gardner’s theory of multiple intelligences suggests the learning objectives and lessons should be in a variety of ways and he also lists nine intelligences. The educational system has revised the curriculum so teachers are encouraged to use many different teaching strategies within the class to include music, cooperative learning, role play (hands-on), discussion and many other strategies. This paper seeks to focus on incorporating games into the modern classroom and curriculum as a strategy for student learning following the 21st Century learner profile. The paper also examines playing games in classroom and its effects on the students’ communication skills. My customized learning theory involves playing games during a 90 minute learning block, but also using the brain-based strategies suggested by Dr. Marcia Tate in order to keep the class actively engaged. Understanding learning theories are vital to the classroom teacher and also to the student learner. The students in the modern day classrooms are very different from the 1990 to 2002 school students. The modern-day students think their lives revolve around cell-phone usage and technology; however, previously the students were taught lecture style. Many theories have been created to address how students learn and think; therefore, teachers have to be cognizant of the different ways to reach learners. Not every student will...
Words: 2033 - Pages: 9
...Management is the name of the Game __________ L. G. Kulkarni Book Review By Sushil S. Patil MMS I (α – 08) About Author: Mr. L. G. Kulkarni is not author by profession. He is the former DY. Managing Director State Bank of India. He has written this book to give insider view of management to common man. Not much information is available about him. He is famous for his anecdotes. About the book: This book provides a rambling journey of a practicing manger and his experiences in the management game. Full of hilarious jokes, anecdotes and, at times, satire, the book provides an insider’s versions of the lofty platitudes and concepts of the management. It is very readable book. You will never get tired, while reading this book. You will understand what is actually happening in firms under the name of the management. This book will entertain you; make you laugh and still, will provide a insight to management. Learnings Chapter 1: The management Game: Management is making the best of inadequate resources in the imperfect world. Management must not be merely useful; it has to be effective. Efficiency is input – output relationship – how much has been achieved per unit cost. Effectiveness is the plan – output relationship – how much of the plan has been achieved. Action is more important than activity. Responsibility carried is more important than hard work you are doing. For ex. a bikini costs more than what a tiny piece of cloth it is made would...
Words: 1996 - Pages: 8
...Interaction in Sports This short paper is about strategic interaction in cycling with reference to the ‘Le Tour de France’ 2013. It will give a short description of the meaning ‘Strategic Interaction’ and it will focus on the teamwork in the different teams from the ‘Le Tour de France’. Furthermore, there will be also given an introduction to an economic principle that can refer to the ‘Le Tour de France’. Strategic interaction is a term that identifies the process when different parties try to achieve common goals which relies on intensive communication between these parties. This intensive communication is needed to make any progress in pursuing a goal. The meaning ‘Strategic interaction’ comes from ‘Game Theory’. This is the study of strategic interaction between people in a structured environment. A game theory is used in practical ways to predict, explain and prescribe events (Camerer, 2003). “Game theory attempts to determine mathematically and logically the actions that players or team members should take to secure the best outcomes for themselves in a wide array of games” following Avinash Dixit (Dixit, 2008). This is why the goal of game theory is getting benefits from using these strategic interactions. Game theory is what happens when people, genes or nations interact. Strategic interaction could occur in the most simplest situations but becomes more complex and more complicated when it will occur in bigger events. It is a very common term in the business world in firms...
Words: 856 - Pages: 4
...REVIEW OF THEORY AND EMPIRICAL WORK* EUGENE F. FAMA** I. INTRODUCTION THE PRIMARY ROLE of the capital market is allocation of ownership of the economy's capital stock. In general terms, the ideal is a market in which prices provide accurate signals for resource allocation: that is, a market in which firms can make production-investment decisions, and investors can choose among the securities that represent ownership of firms' activities under the assumption that security prices at any time "fully reflect" all available information. A market in which prices always "fully reflect" available information is called "efficient." This paper reviews the theoretical and empirical literature on the efficient markets model. After a discussion of the theory, empirical work concerned with the adjustment of security prices to three relevant information subsets is considered. First, weak form tests, in which the information set is just historical prices, are discussed. Then semi-strong form tests, in which the concern is whether prices efficiently adjust to other information that is obviously publicly available (e.g., announcements of annual earnings, stock splits, etc.) are considered. Finally, strong form tests concerned with whether given investors or groups have monopolistic access to any information relevant for price formation are reviewed.' We shall conclude that, with but a few exceptions, the efficient markets model stands up well. Though we proceed from theory to empirical...
Words: 5051 - Pages: 21
...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Memo to Manager In: Business and Management Memo to Manager Memo Date: March 22, 2010 To: Andre Adams, Program Coordinator of the TerpZone * From: * Adedoyin Ogunbajo, Tournament Coordinator, the TerpZone Subject: Proposal to implement a sign-up fee for all video game tournaments. Purpose The purpose of this proposal is to request your approval to evaluate the current video game tournament sign-up process and ultimately institute an entrance fee for all tournaments starting next semester. Summary When the TerpZone started running the video game tournament series, I personally did not know what to expect, as I was in charge of coming up with a schedule of games, implementing the schedule into the TerpZone calendar, coming up with various ideas to market the various tounrmanents, and actually hosting and running the tournaments. But as the results have shown, the TerpZone video game tournament series has been a huge success, and the attendance numbers have steadily increased as more students become aware of the possibilities that our tournaments offer. However, as this number has continued to increase and I have continued to implement different new strategies and additions to the tournaments, there still lies the problem of what measure of compensation the students...
Words: 422 - Pages: 2
...Strategic interaction in sports Penatly kicks in soccer This short paper will explain how penalty kicks in soccer can be a example of strategic interaction. Strategic interaction[1] is a term that is broadly used to identify a process that seeks to involve several parties in achieving a common goal, relying heavily on effective communication to make progress in pursuing that goal. Everyday, people interact between each other and most of the time when people make a decision they think about the others and how they can react. Some decisions that one take depends sometimes on the choice of others. This paper is going to link social interaction with an economic principle. Soccer being a low-scoring game, matches often finish on a draw and need to be decided by penalties. In soccer, penalty kicks put the goal keeper against a striker in a tough mental contest. Indeed, it takes less than a half second for the ball to touch the net unless the goalkeeper succeed in intercepting it which is definitely not enough time for the goalkeeper to analyze the trajectory of the ball. He must guess where the striker will shoot unless he does not have any chances. Both striker and keeper must make delicate decisions. A left-footed strike will make a better shot to the left. The keeper will anticipate the shot and the striker would sometimes shot to the right because a even a weaker shot is better where the keeper does not stand. Same if the striker decide to toss a coin, the keeper would...
Words: 754 - Pages: 4
...In game theory, the Nash equilibrium is a solution concept of a non-cooperative game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy.[1] If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitute a Nash equilibrium. Stated simply, Amy and Will are in Nash equilibrium if Amy is making the best decision she can, taking into account Will's decision, and Will is making the best decision he can, taking into account Amy's decision. Likewise, a group of players are in Nash equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others in the game. Contents [hide] * 1 Applications * 2 History * 3 Definitions * 3.1 Informal definition * 3.2 Formal definition * 3.3 Nash's Existence Theorem * 4 Examples * 4.1 Coordination game * 4.2 Prisoner's dilemma * 4.3 Network traffic * 4.4 Competition game * 4.5 Nash equilibria in a payoff matrix * 5 Stability * 6 Occurrence * 6.1 Where the conditions are not met * 6.2 Where the conditions are met * 7 NE and non-credible threats * 8 Proof of existence * 8.1 Proof using the Kakutani fixed...
Words: 1390 - Pages: 6
... 2 Abstract: During the course of study in references for the topic of deterrence I have found a vast amount of information. Most are articles written by different intellectual scholars in the criminal justice field all weighing in on what they believe the theory of “Deterrence” is and how it relates to the ability to deflect and or inhibit crime during war time, peace time and stately situations. In particular I found one article to be an astounding work done by a man named Stephen Quackenbush with an article titled General Deterrence and International Conflict: Testing Perfect Deterrence Theory (2006). Although this article deals with deterrence theory of international conflict it still involves the basic roots of deterrence. I would like to show that through Mr. Quackenbush’s work one can come very close to a “Perfect Theory of Deterrence “ by simply following the logic of the article. Deterrence 3 When searching for the topic it was my goal to find the meaning of deterrence and or the application behind the theory. I wanted something with close ties to the relationship of the text we are using in the classroom. The text we are using Vold’s Theoretical Criminology, 6th ed (Bernard, Snipes, & Gerould, 2010). I found in the article what I needed to relate different aspects of the text...
Words: 2023 - Pages: 9
...Control theories make a little more sense to me. Reckless' containment theory says there are predispositions that make people commit crimes. He uses the terms pushes and pulls. Pushes can come from troubled psyches, or stressful circumstances outside the individual, whereas pulls can be from family, friends, etc. His point is however that these pushes and pulls are not evenly distributed between society. He recognizes these pushes and pulls but says there is more needed to completely explain. Not all youths in socially disorganized areas that are exposed to these pushes or pulls commit crimes. Hence the factor of control. He studied inner and outer containement. Inner involves a strong conscience, conventional beliefs, commitment to goals, etc. Outer containment is an array of forces that limit exposure to criminal pushes and pulls. I like this theory a lot. I think it's hard to test, because we're talking about a lot of inner questions like morals and goals. He recognizes the "pushes and pulls which can explain a lot of crime, but not all. Then he factors in these containment factors which push the theory further. I think it's very valid and important to study these types of factors, but at the same time I think it's hard to study it. All in all, I like this theory and I think it makes a lot of sense. Hirschi's a bit different with the social bond theory. He didn't attempt to explain why individuals engage in criminal acts, but rather why individuals choose to conform to conventional...
Words: 2228 - Pages: 9
...CASE STUDY PAPER 1 Kid Killers: Delinquency Theories Arache Lotfalian UMUC CCJS 350 Professor Donovan 11/29/2012 CASE STUDY PAPER 2 In the middle class suburban town of Littleton, near Denver Colorado, a 17 year old murderous fantasy is beginning to take shape. Eric Harris and a friend known as “Vulcan” or “V” intend to commit an act so violent that it will secure their place in history. The following is an expert from Harris’s Journal, mastermind behind the Columbine Shooting: “Sometime in April next year, me and “V” will get revenge, kick natural selection up a few notches. If we’ve learned anything about the art of making pipe bombs, we’ll set hundreds of them around roads, bridges, buildings, and gas stations; anything that will cause damage and chaos. It will be like the L.A. riots, Oklahoma City bombings, WWII, Vietnam, Duke and Doom all mixed together. I want to leave a lasting impression on the world.” One year later on April the 20th 1999, Eric Harris and another Columbine student, Dylan Klebold, committed the worst High School massacre in American history. They killed twelve students and one teacher; injured twenty three others and then turned the guns on themselves (Avila, 2000). Immediately following the mass shootings, media, sociologists and criminologists set about the difficult task of discovering the motives of the killers and answering the question of whether or not problems within society allowed this to happen....
Words: 1999 - Pages: 8
...of current administrative theory. One thing they seem to imply is a coherence and a unity in administrative theory which do not seem to exist. When one attempts to assay the literature dealing with a concrete administrative process such as decision making, he discovers this. Divergent approaches to the study of decision making show that there are conflicting conceptions of its nature and function. And these probably are symptoms of a more fundamental conflict in contemporary administrative theory. Administration and leadership as foci for study have traditionally been the concern of historians, occasional novelists, and students of management, public and private. A generation ago these people had articulated a consistent, rather comprehensive conception of leadership, and especially administration. The Papers of Gulick and Urwick, for example, were regarded by many of us as a major conceptual achievement setting forth a twentieth-century theory of organization. Even as these ideas were gaining acceptance, however, the concepts that would replace them were emerging. After World War I, even before the 'The authors wish to express their appreciation to Professor Paul Wasserman for access to Decision-Making: An Annotated Bibliography, published in 1958 by the Graduate School of Business and Public Administration, Cornell University, and to Dr. Martin Shubik for his helpful criticisms. 98 ADMINISTRATIVE SCIENCE QUARTERLY appearance of the Papers, industrial sociologists,...
Words: 9240 - Pages: 37