Home | ARTS | Operations Management | Assumptions for a Competitive Game - Basic Concepts In Game Theory

Operations Management - Game Theory, Goal Programming & Queuing Theory

Assumptions for a Competitive Game - Basic Concepts In Game Theory

   Posted On :  24.06.2018 09:37 pm

Game theory helps in finding out the best course of action for a firm in view of the anticipated countermoves from the competing organizations.

Assumptions for a Competitive Game
 
Game theory helps in finding out the best course of action for a firm in view of the anticipated countermoves from the competing organizations. A competitive situation is a competitive game if the following properties hold:
 
The number of competitors is finite, say N.
 
A finite set of possible courses of action is available to each of the N competitors.
 
A play of the game results when each competitor selects a course of action from the set of courses available to him. In game theory we make an important assumption that al the players select their courses of action simultaneously. As a result, no competitor will be in a position to know the choices of his competitors.
 
The outcome of a play consists of the particular courses of action chosen by the individual players. Each outcome leads to a set of payments, one to each player, which may be either positive, or negative, or zero. 
Tags : Operations Management - Game Theory, Goal Programming & Queuing Theory
Last 30 days 217 views

OTHER SUGEST TOPIC