Font Size: a A A

Several Applications Of Game Theory In Economics

Posted on:2004-01-25Degree:MasterType:Thesis
Country:ChinaCandidate:H WangFull Text:PDF
GTID:2156360095952958Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Since game theory was introduced into the economic research field, it has become one part of the economics mainstream and even the basis of microeconomics. Especially under the present economic environment, game theory is increasingly becoming the main research tool and method for understanding, analyzing and solving the problems encountered in our economy development and the industrial organization. On the basis of knowledge of game theory, this paper made several applications of game theory in the economy research. It consists of four parts.In the first part, we gave a literature summary and introduction of the development of game theory, its importance and functions to the economic research and the theory of industrial organization. In the second part, from the theory of relative shareholding domination (RSD) and power indices of cooperative game, we discussed how to resolve the problem faced with our state-owned companies' reform in order to realize state shareholding domination as well as utilizing the existing fund fully. This gives our companies especially the state-owned enterprises useful inspiration. In the third part, the problem of quality discrimination under monopoly situation was examined. The explicit definition of quality discrimination was given and its model was also established and extended. Although with imperfect information, monopolists cannot extract all the surplus of consumers, through a self-selection system monopolists can bebetter off. In the final part of this paper, following the analysis of part three, we studied the sales promotion behaviors of monopolists under monopolistic situation. Our results show that under quality discrimination, monopolists still can get more profit by the implement of sales promotion. The conduct of sales promotion is profit-driven behavior.
Keywords/Search Tags:Game Theory, Theory of Industrial Organization, Relative Shareholding Domination ( RSD ), Quality Discrimination, Sales Promotion
PDF Full Text Request
Related items