Page 10 - tmp

Games around us

Knežević Luka

Center for talented youth Belgrade II, Belgrade, knezevicluka08@gmail.com
terms, firm 2 will accept (Y), and profit of firm 1 will be
1.Introduction even lower. You can see that in picture 2.

We are surrounded with different competitions and games,
but we have not properly introduced in it. Every single
decision and move can be consider by mathematics.
Seemingly, logical solutions are not always the best, like i
thought. That is the reason why I use simple example from
everyday life.

2.Method
Picture 3-Threats
I analise new and existing examples from “Game theory“,
which we can apply it in everyday life. If some new firm considers entering the market, the old one
will lose their clients. They try to stop that with threats of
price war (PW). That is not credible threat because profit of
3.Results old firm is 0 in cause of price war, and in cause of not price
war (NPW) they spare the clients. You can see that in
I found new conclusions about sequence games, and also picture 3.
winner strategies. We come to this conclusion using Nash equilibrium,
Prisoner's dilemma, backward induction and credible
threats.

4.Conclusion

We saw that mathematic is all around us, and that we
should verify every strategy. That is only way to find the
decision. I try to learn more about “Game Theory”, and find
more and more new examples and purpose in everyday life.
Picture 1-Selections rate

In this picture you can see possible profit of firm 1 and firm 5. References
2 after they choose high (H) or low (L) price of article. You
can also see that chosen profit is not the biggest, but it is 1.http://gatton.uky.edu/faculty/sandford/401_f12/sequential
safest, because firm 1 and firm 2 do not cooperate. They .pdf
always choose strategy with larger profit.
2. http://bk.docsity.com/sr-video/13__Sekvencijalne_igre
3.http://www.ef.uns.ac.rs/Download/menadzment_rizikom_
master/2010-01-11_teorija_igara.pdf
4.„Теорија игара: елементи и
примена“,Стојановић Божо

Picture 2-Selections of adverts

If firm 1 accept (Y) terms for commercial, their profit
would be less than before, but if they do not accept (N) that