A Survey of Game Theory Applications in Turkey

A Survey of Game Theory Applications in Turkey

İ. Erdem Seçilmiş (Hacettepe University, Turkey)
Copyright: © 2018 |Pages: 14
DOI: 10.4018/978-1-5225-2594-3.ch001
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Abstract

This chapter gives a brief review of game theory applications in Turkey. The intention is twofold: first, to provide the reader with an overview of game theory and its applications in Turkey; second, to explore the tractability of economic problems when formulating them as game theory models. The discussion starts with a general description of game theory models and follows with an investigation of game theory applications performed in Turkey.
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The Fundamentals Of Game Theory

As a collection of models, game theory investigates the interaction and the strategy of decision makers. The following is a list of some situations involving conflict and competition in which game theory is used (Osborne, 2004):

  • Firms competing for business

  • Political candidates competing for votes

  • Competing experts’ incentives to provide correct diagnoses

  • The role of threats and punishment in long-term relationships

  • The evolution of siblings’ behavior towards each other

  • Jury members deciding on a verdict

  • Animals fighting over prey

  • Legislators’ voting behavior under pressure from interest groups

  • Bidders competing in an auction

Game theory is concerned with finding the best actions for individual decision makers2 in above-mentioned situations and recognizing stable outcomes, mostly, from the perspective of an external observer (Liqiang et al., 2007). Every game is constructed on the basis of three elements (MacKenzie & Wicker, 2001):

  • Strategic interaction

  • Constraints on the actions

  • The interests of the players

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