It is obvious that at any single moment when an institution or organization or even an individual has to develop incentives or rewards in order to obtain a particular behaviour or outcome from a person, sometimes the results have gone towards being very complex resulting to consequences that were unintended. This is the reason behind the application of mathematical models that are strategically mounted with the game theory which makes it possible to predict outcomes in such cases. This is according to what was shown by Tarun Sabarwal, the De-Min and Chin-Sha Wu Associate Professor who is also the associate chair of economics at the University of Kansas.
Sabarwal went ahead to say that his work was to study decentralized and very interdependent decisions and the effects when everyone else behaves in a similar manner. He has been able to study very vital classes of behaviours and outcomes that have been naturally recorded by games that have got strategically placed compliments and those with substitutes. When applying the game that has got strategic complements, those to participate are supplied with incentives that make them move in the same direction. A good example is when people who have been depositing money in a bank run to go withdraw their money, it is obvious that any other depositor remaining will also go to withdraw his or her money before it gets depleted from the bank.
On the other hand, games supplied with strategic substitutes is where participants are provided for with incentives which will make them move in the opposite direction from each other. A good example is when we have so many people travelling toward the same place. the place will experience overcrowding that makes will make some other people travelling to the same place to use alternative routes to avoid crowding.
References
https://m.phys.org/news/2019-01-economists-game-theory=outcomes-incentives.html
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