Game Theory

822 Words2 Pages

Game Theory was said to have been introduced by Emile Borel in 1921. Borel was a French mathematician who published papers on the theory of games. From this standpoint and according to the article “Game Theory”, Borel could have been named the “first mathematician to envision an organized system for playing games” however; evidence has shown that Borel did not develop his ideas any further. This is the reason why most historians have given credit to John Von Neumann.

Von Neumann was born in 1903 in Budapest, Hungary. His first mathematical paper was published, along with the help of his tutor, when he was 18. Von Neumann went on to study mathematics in college and eventually earned his PhD in mathematics with a minor in both physics and chemistry. Game Theory is said to have been developed by Von Neumann in 1944.

Game Theory deals with two or more decision makers who are called players, who compete as opponents against one another. In game theory, the players select a strategy without any prior knowledge of the other player’s strategy. Siliconfareast.com defines game theory as “a concept that deals with the formulation of the correct strategy that will enable an individual or entity, when confronted by a complex challenge, to succeed in addressing that challenge.”

An example of when game theory can come in handy on my daily job is when our department meets and at the end of the meeting, we sit and try to decide where we will go for lunch. Although this seems like a simple decision to make, this decision does call for strategic thinking and making use of all available resources to come up with the best location that meets each person liking. There are several within our department who cannot eat spicy food and a few others who ...

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... soon as there is a playing field where rules should be followed and behaviors rationalized, Game Theory can create the best competitive moves.

Works Cited

Value Based Management.net (2010, March 29). Game Theory models and methods available at www.valuebasedmanagement.net/methods_game_theory.html

France, Chen, Janet., Lu, Su-I., Vehkter, Dan (2010, March 29). Game Theory available at http://171.64.64.250/class/cophmore-college/projects-98/game-theory/

France, Chen, Janet., Lu, Su-I., Vehkter, Dan (2010, March 29). Von Neumann and the Development of Game Theory available at http://171.64.64.250/class/cophmore-college/projects-98/neumann.html

Siliconfareast.com (2010, March 29). Game Theory available at www.siliconfareast.com/game-theory.htm

Cengage Learning, Inc. Quantitative Methods for Business. Copyright 2010. Introduction to Game Theory page 166

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