There are several definitions of game theory. A few standard definitions are presented below.
Definitions of game theory
There are several definitions of game theory. A few
standard definitions are presented below.
In the perception of Robert Mockler, “Game theory
is a mathematical technique helpful in making decisions in situations of
conflicts, where the success of one part depends at the expense of others, and
where the individual decision maker is not in complete control of the factors
influencing the outcome”.
The definition given by William G. Nelson runs as
follows: “Game theory, more properly the
theory of games of strategy, is a mathematical method of analyzing a
conflict. The alternative is not between this decision or that decision, but
between this strategy or that strategy to be used against the conflicting
interest”.
In the opinion of Matrin Shubik, “Game theory is a
method of the study of decision making in situation of conflict. It deals with
human processes in which the individual decision-unit is not in complete
control of other decision-units entering into the environment”.
According to von Neumann and Morgenstern, “The ‘Game’
is simply the totality of the rules which describe it. Every particular
instance at which the game is played – in a particular way – from beginning to
end is a ‘play’. The game consists of a sequence of moves, and the play of a
sequence of choices”.
J.C.C McKinsey points out a valid distinction
between two words, namely ‘game’ and ‘play’. According to him, “game refers to
a particular realization of the rules”.
In the words of O.T. Bartos, “The theory of games
can be used for ‘prescribing’ how an intelligent person should go about
resolving social conflicts, ranging all the way from open warfare between
nations to disagreements between husband and wife”.
Martin K Starr gave the following definition: “Management
models in the competitive sphere are usually termed game models. By studying
game theory, we can obtain substantial information into management’s role under
competitive conditions, even though much of the game theory is neither directly
operational nor implementable”.
According to Edwin Mansfield, “A game is a
competitive situation where two or more persons pursue their own interests and
no person can dictate the outcome. Each player, an entity with the same
interests, make his own decisions. A player can be an individual or a group”.
Tags : Operations Management - Game Theory, Goal Programming & Queuing Theory
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