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The Right Game : Use Game Theory

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The Right Game: Use Game Theory to Shape Strategy
Midterm Paper
Submitted by: Zeinab Amin
Submitted to: Pan Zhang
Selected Topics - SMGT4470
Northern Alberta Institute of Technology
Feb 27, 2017 Table of Contents

EXECUTIVE SUMMARY 3
INTRODUCTION 4
TYPES OF GAMES 4
ANALYSIS 5
WIN-WIN 5
SHAPING THE GAME YOU PLAY 5
5 ELEMENTS 6
PLAYERS 6
ADDED VALUE 6
RULES 7
TACTICS 7
SCOPE 7
RELATED ARTICLES 7
Why Good Accountants Do Bad Audit 7
Corporate Short-Term Thinking and The Winner Take All Market 7
CONCLUSION 7
REFERENCES 9

EXECUTIVE SUMMARY
Over the past two decades, the Game Theory has changed the game of Business in so many ways, from how players interact to the outcome of the Game theory
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The game theory was created in 1944 when mathematical genius John von Neumann and the economist Oskar Morgenstern published their book Theory of games and economic behavior (Brandenburger & Nalebuff, 1995). Till this day, their work provides a systematic way to understand the behaviors of player in situations where their fortunes are interdependent (Brandenburger & Nalebuff, 1995). “Game theory is a sort of umbrella or ‘unified field’ theory for the rational side of social science, where ‘social’ is interpreted broadly, to include human as well as non-human players.” (Aumann, 1987).

TYPES OF GAMES
The pioneers of the game theory distinguished two types of games, the first is rule-based games and these types of games require players to follow rules and this promotes the, ‘for every action, there is a reaction’ principle. This theory, like chess, inspires individuals to think like their respective opponents and anticipate how such players will respond to their own moves. In addition, the second type is freewheeling games and these games require players to interact without restraints and this game promotes the principle (Brandenburger & Nalebuff, 1995), that you cannot take away from the game, more that you have invested in it.
Interactions in the game theory either have the vertical dimension, which are the company’s customers and suppliers.
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