game theory

Popular Terms
Two-person zero-sum games (where one's gain must mean the other's loss) are used by military-strategists. Many-person (non-zero-sum games where it pays to cooperate) are used in study of economic behavior. Games such as prisoner's dilemma (where two players must choose-without communicating with each other-either to cooperate or betray) are used in political theory and union (collective-bargaining) negotiations. In business schools, game theory is closely associated with decision-theory, and is used to study situations where management-psychology can play an important part. Developed by two US mathematicians, Oskar Morgenstern (1902-77) and John von Neumann (1903-57) in their 1944 book 'Theory of Games And Economic Behavior.'

Use 'game theory' in a Sentence

When the economists where conducting there test of the game theory they the equation to test how many possible outcome there could be.
17 people found this helpful
Depending on what the decision is you can maybe use game theory to try and see a few steps ahead and plan things out.
16 people found this helpful
Thinking of business in a game theory way can allow you to see the moves your competitors make before they make them.
14 people found this helpful

Notable Quotable

"Allocentrism is the term used to describe seeing from others' points of view. This skill is essential for business game theory, for negotiating, for value creation, for all types of communication, and for life in general."
- Tom Murcko

Email Print Embed