Experts in game theory expands method to incorporate new categories
Tarun Sabarwal is a game theory expert who is a professor of economics at the University of Kansas. He creates and studies mathematical models that can be used to predict behavior.
“Game theory can be explained as everyone is doing what they want to do, but what each person does affects the well-being of others through what we call ‘payoffs.’ For firms, that means profits. Or for countries, that means social welfare,” he says
His concepts have been published in the Games and Economics Behavior journal, which is the best in the game theory sphere. Eric J. Hoffman is the co-author of the article.
“We went in understanding the benefit of the global games method. Our goal was to see if we can expand this tool to allow for analysis of additional classes which it can’t cover presently. And we have managed to do that,” he says.
It is a daunting task to explain the strategies of game theory in a short article. But in an abridged article coupled with Sabarwal analogies, the concept becomes more graspable.
“A basic metaphor is that in a group of individuals, if we coordinate with each other, we can get to a better outcome. Let’s say we have two technologies … In any organization, there is a benefit from coordinating on one technology. Let’s just select one because if we have both, it won’t be as good as even going with the worse one,” he said.
Experts in game theory consider both outcomes acceptable. However, one outcome is stronger than the other one.
Source: https://phys.org/news/2019-12-game-theory-expert-method-incorporate.html
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