Chapter 2 Game theory
In this chapter, the fundamentals of game theory are presented. Equilibria and response strategies are discussed in various forms of both static and dynamic games. Like microeconomic concepts, game theory is naturally present in business situations and helps to reflect on strategic decision-making such as in lease negotiations or large-scale industry transformations.
2.1 Introduction
The foundations of information economics are, generally speaking, microeconomics and game theory. We looked at the basics of microeconomics in the previous chapter, and in this we are going to introduce the reader to game theory. The following is a list of the parts in the games that we are going to study.
- Players: The ones playing the ...
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