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Game theory models are used by managers in taking better decisions regarding price and output. As managers work in interactive payoff environments, they need a framework that anticipates the actions of others. Few of the game theory strategies are:
Two Person Games: In this game the player can be a single player or can also be an organization- is a decision-making unit with a certain amount of resources. The rules of the game describe how these resources can be utilized.
Nash Equilibrium: This is based on the solution concept, where two or more players are involved. In the game, all the players are assumed to know the equilibrium strategies of other players and no player gains anything by changing his or her own strategy unilaterally. One player if he changes his strategy while others keep their strategies unchanged, then the current set of strategy choices and the corresponding payoffs constitutes Nash equilibrium.
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