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Competitive strategy- Game theory

Uroš Jakovljević
Regional centre for talented youth II, Serbiа, urosh.belgrade@gmail.com

1 Introduction

In everyday life we often have to decide between two
things. We are players of one great game, and we aren’t
aware of it. We wanted to understand our life better, and
events, and we wanted to know what will happen if we buy
pizza, and what when we buy roll in bakery, we wrote this
research. This section of math shows reality, real
oppotunities, аnd real profits.

2 Мethods
Picture 2 – Basic matrix of the game

Here we have situations depending of the prices which coul
players choose. These are real profits of this game. 6.0/ 6.0
means that left price is for bakery Rim, and right for bakery
Suzana. Profits are in thousands of dinar valute. This is also
applied for everything in matrix.
But precisely that player's strategy is often deadly for their
together profit.
Prisoner's dillema means that in the game exsits situation
where both player get bigger profit, but individually
looking, neither of them don't want to play that move. In
our work we answered why is this most common situation
Picture 1- bakery in life.

We are using many examples and illustrations in our
academic work so we could explain basics of this theory. In 4 Conclusion
that examples we are observers, we follow their rational
decisions, and eventually we criticize them. We follow This research that is generally about competitive strategy of
competitive situations in form of the game. First we will two bakeries, we learned why there is need to consider
start with two bakeries. That would be simultaneous game strategies of other players when we want to have our own
(where both players make moves at the same time) and we decision, because we aren't in vacuum, and our actions will
will see their actions in matrix so we could try to find trigger reactions of other players. If we act strategic and
optimal strategy. smart we can predict those reactions, and that can be very
important when we aren't sure what decision is the best. In
this research we learned about simultaneous games, about
3 Results the matrix of the game. We know how to find dominant
strategy, and while we were analyzing the game we found
Rational player always choose domminant strategy. We Nash equilibrium and Prisoner's dillema. We saw that there
conclude that our opponent will play rational too, so he will is reason for cooperation, and that with cooperating we can
use dominant strategy. Research showed to us that there is maximize our profits.
situation where players usually don’t want to change their
strategies, and that situation is named Nash equilibrium.
References
Nash equilibrium is concept of solutions of the game,
where we know that every player knows strategy of his
opponent , and neither of them could profit by changing 1. ,,Победа или пораз – Стратегије и Теорије игара''
only his strategy. That solution of the game is Nash - Никола Милић и Лука Станојевић
equilibrium.
2. https://www.youtube.com/watch?v=x8gOi7D6QeQ