Game theory economics

Game Theory and the Prisoner's Dilemma

The Prisoner's Dilemma

Terry L. Roe, Applications of Game Theory in Agricultural Economics: Discussion, American Journal of Agricultural Economics, Vol. 78, No. 3 (Aug., 1996), pp. 761-763

When can game theory be used to good effect in A level economics essays? You would normally use game theory at A2 level when discussing the market structure of oligopoly. But in fact there are many other instances where you might be able to apply game theory to topics contained within the A2 syllabus – this revision note tries to provide you with a few ideas!

Nash equilibrium is a very crucial concept of game theory. It helps to determine an optimal solution in a non-cooperative game where all players do not have any incentive to deviate from their initial move. In other words, this is the situation where everyone in the game is putting in their best, assuming and understanding clearly what the other players would be supposed to be doing.

Game theory is an economic model that lets you analyze a situation and figure out which outcomes could result in the best outcome for you.

Read 14 reviews from the world’s largest community for readers. An easy-to-follow, non-technical approach to using game theory in every business battle Ga…

The world is full of systems. Often they exist below the threshold of what we perceive. It’s all a whirling clockwork of near-infinite complexity, from the tiny mysteries of quantum physics t…

Read "The Mathematics of Games of Strategy" by Melvin Dresher available from Rakuten Kobo. Melvin Dresher, noted research mathematician for the Rand Corporation, puts forth an exceptionally clear presentation of...

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