UNIT IV

GAME THEORY

Meaning of Game theory

IN Business and economic literature the term games refer the general situtation conflict a compitation in which two are more competators are involved in decision making activities a game theory is a type of decision theory in which ones actions is determined after taking in to a account. The Game theory provide a series of mathamatical model that may be quite usefull in explain interactive decision making concept this theory is applicable to a wide varity of situtations companies struggling for market shares two palyers struggles to win in the market. This theory is based on minimax principle which implie that each competator will add so as to minimize is maximum loss . The father of the game theory was I.von NEUMANN when who was propoundly introduced this game theory.

DEFINITION OF GAME THEORY

AS according to defined ROHILKHAND game theory Game theory as an activitly between two are more persons involved activities. By each persons according to a pre-determined sets of rules, at the end of the game. Each persons receive some benfit or suffers or loss. As according to KOHLIER it is assume that rules governing the choices. The out come resulting from a particular choice is also known to the players. T he expression in terms of numerical values. From the above definitions the eminent personalities have thrown the light on the game theory. They propounded that game theory is very essential in today competation edge for the highly. Good profits charge based on their strategies which impelemented for the game theory.