( ISSN 2277 - 9809 (online) ISSN 2348 - 9359 (Print) ) New DOI : 10.32804/IRJMSH

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GAME THEORY AND HUMAN BEHAVIOR

    1 Author(s):  MR. RAKESH SEJWAL

Vol -  5, Issue- 3 ,         Page(s) : 361 - 365  (2014 ) DOI : https://doi.org/10.32804/IRJMSH

Abstract

Game theory is a study of strategic decision making. Specifically, it is "the study of mathematical models of conflict and cooperation between intelligent rational decision-makers". An alternative term suggested "as a more descriptive name for the discipline" is interactive decision theory.Game theory is mainly used in economics, political science, and psychology, as well as logic and biology. The subject first addressed zero-sum games, such that one person's gains exactly equal net losses of the other participant or participants. Today, however, game theory applies to a wide range of behavioral relations, and has developed into an umbrella term for the logical side of decision science, including both humans and non-humans (e.g. computers). Modern game theory began with the idea regarding the existence of mixed-strategy equilibria in two-person zero-sum games and its proof by John von Neumann. Von Neumann's original proof used Brouwer fixed-point theorem on continuous mappings into compact convex sets, which became a standard method in game theory and mathematical economics. His paper was followed by the 1944 book Theory of Games and Economic Behavior, co-written with Oskar Morgenstern, which considered cooperative games of several players. The second edition of this book provided an axiomatic theory of expected utility, which allowed mathematical statisticians and economists to treat decision-making under uncertainty.

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1. Ross, Don. "Game Theory". The Stanford Encyclopedia of Philosophy (Spring 2008 Edition). Edward N. Zalta (ed.). Retrieved 2008-08-21.
2. Experimental work in game theory goes by many names, experimental economics,behavioral economics, and behavioural game theory are several. For a recent discussion, see Colin F. Camerer (2003). Behavioral Game Theory: Experiments in Strategic Interaction (description and Introduction, pp. 1–25).
3. At JEL:C7 of the Journal of Economic Literature classification codes.
   • R.J. Aumann (2008). "game theory," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
   • Martin Shubik (1981). "Game Theory Models and Methods in Political Economy," inKenneth Arrow and Michael Intriligator, ed., Handbook of Mathematical Economics, v. 1, pp. 285–330 doi:10.1016/S1573-4382(81)01011-4.
   • Carl Shapiro (1989). "The Theory of Business Strategy," RAND Journal of Economics, 20(1), pp. 125–137 JSTOR 2555656.
4. N. Agarwal and P. Zeephongsekul. Psychological Pricing in Mergers & Acquisitions using Game Theory, School of Mathematics and Geospatial Sciences, RMIT University, Melbourne

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