Exam 19: Game Theory

Game theory is not very useful during Union negotiations.

List at least two game theory applications.

Bagles RUS is expanding into a high-growth suburban area.To promote business and lure customers from the competing Wer Bagel store,they are considering offering a free dozen bagels to the first 50 customers or radio advertisement.The payoff for Bagels RUS is given in the table below.What is Bagels RUS' (X)best strategy? Y₁ Y₂ X₁ 3 6 X₂ 2 -2

The minimax criterion is equivalent to maximizing one's minimum gains.

The cornerstone of game theory is Harsanui equilibrium and Harsanui bargaining problems.

What is the value of the following two-person game? Y₁ Y₂ X₁ 15 20 X₂ 8 4

If the upper value of the game is larger than the lower value of the game,a saddle point condition exists.