Solving Game Theory Problems Personal Financial Statement Software

Posted by / 13-Jun-2020 08:26

Solving Game Theory Problems

On the other hand, if organization B cooperates, then both of them would earn equal profits.

In normal form games, the matrix demonstrates the strategies adopted by the different players of the game and their possible outcomes.Therefore, their negotiation would have helped in solving out the problem.Another example can be cited for pan masala organizations.Organization A has two strategies; one IS to enter the market and challenge to survive or do not enter the market and remain deprived of the profit that it can earn.Similarly, organization B also has two strategies either to fight for its existence or to cooperate with organization A.

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Figure-2 shows the decision tree for the present situation: In Figure-2, organization A takes the first step that would be followed by organization B later on.