Game theory, Cournot’s duopoly model, Prisoner’s dilemma, equilibrium refinement
Abstract
In the late 20th century and early 21st century, there has been extensive literature published regarding proposals of the utilization of game theory from different academic aspects, which are tedious and unnecessary work for scholars who only wish to simply learn about some of the applications of game theory. This paper summarizes and organizes a few examples of the applications of game theory using prominent existing literature from three aspects: business, economics, and education, hoping to spark scholars’ interests and provide a broad understanding for readers as to when and how game theory may be used. When applying game theory to a real-world issue in business, economics, or education, the development and design of a “game” with certain selected constraints and variables is used to replicate the real-world model using mathematical languages. Depending on the real-world conflict these models are portraying, they might be novel concepts or variations of already-existing models. The summarization of some applications of game theory may spark interest for scholars interested in the various fields explored such as business management, economics, and optimization and quickly understand current progress in the area of game theory.
