Game theories

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Game theory is one of the hypothetical social situations where the main framework is to compare and contrast competing layers. In some case, game theory has been used as a science of strategy or an optimal way of deciding any independent and competing marketing setup in terms of actors and the strategies used. The pioneers of game theory were Neumann and John Nash. In addition, maintenance decision, in this case, is also the key point that is being compared and contrasted by the author. The author argues that, when attains a strategic dimension, it will be easier for such a market to manipulate prices mainly through the capacity withdrawals (Mas-Colell, 1). The game theory has also brought the revolution of the economists who address the crucial mathematical problems which relate to economic models. Therefore, the game theory has served as an application which compares main key players in a business environment who have the aim of developing technological science in marketing.
The main ideas being conveyed in this game theory is a cooperative model which deals with coalition and interactions which occurs when the strategic choices which affect the economic gain of any market. In most case, the economists use game theory to make people understand the oligopoly firm behavior. Therefore, it helps in predicting any likely outcome that occurs when a firm engages in any certain behaviors. The behaviors include price fixing and coll…