Question

Describe a business example of a one-shot game and a repeated game. How does Game Theory help us in these situations?

Answer 1

Game theory is the investigation of how individuals and organizations carry on in vital circumstances (for example at the point when they should consider the impact of other individuals' reactions to their very own activities).

In a one-shot game, a lot is on the line - however, convey no further repercussions. In any case, when playing a repeated game, a one-shot procedure may not be the best move: You and your rival can show signs of improvement returns over the long haul by collaborating (not admitting) now and again and surrendering (admitting) at others. This encourages you to test each other's procedures and is known as a blended methodology.

Truth be told, regardless of whether you rehash the game, yet at the same time know precisely what the number of games there will be, the two players will both expect the other to augment utility by abandoning on the absolute last movie, or the last game in the arrangement. Knowing this, the two players acknowledge they should surrender on the second-to-last move. But, since the two players realize that will be the ideal procedure, they'll each play their most self-serving technique the move before that, etc, until they're pre-empting the other on the absolute first game in the arrangement. This is the main possibility for either player to do as such, in case both quickly tumble to a drawback, never to recuperate the lead.