Montenegrin Journal of Economics

Game Theory-Base For Economic Behaviour

Svetlana Rakočević

2006, vol. 2, no. 3, p. 161-172

In everyday life, professional and private, environment usualy is not amorf. There exist subjects and groups whose activities are relevant and sometimes even decisive for our decisions. In the same time our activities have feed back on decisions of those subjects, so the final results that each of us achieve are product of individual decisions and their interactions. Among numerous problems of contemporary science there lies a question how to explain and formalize in exact way behaviour of market participants under conditions of uncertanty and conflict of interests. Game theory has offered one of the answers. Game theory treats economy like complex and hardly predictible game with lot of participants, and not like deterministic machine. Analitical aparatus of the game theory has been developed in order to find adecvate metodological answer i.e. to offer usible tool of rational decision analysis under risk, uncertainity and conflicted interests of participants. The aim of this paper is to review the importance of game theory and possibility of its aplication in the analysis of complex economic problems, mainly equilibrium in the case of oligopoly.

suggested citation:

Svetlana Rakočević. "Game Theory-Base For Economic Behaviour." Montenegrin Journal of Economics. vol. 2, no. 3, 2006, p. 161-172

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