Question

Problem 3: Game Theory Outside The Classroom

Identify a real-world scenario that you have experienced, seen, heard about, or thought about this week, which may be formulated as a game using the concepts that we have studied so far. If you can, focus on the concepts that we learned recently rather than on the concepts that we learned in the first week. Formulate it as game as well as you can, and comment on what behavior you might expect to emerge from this game, and why.

Answer 1

WHAT IS GAME THEORY --

The game theory has not been formed as the method of the applied mathematics ,but also to know the reactions of the individual how is facing the risk of a uncertain situations . The players in the game has the opportunity among many possible course of actions . The actions they take against the other player is the strategy they have made against them . like changing the price , changing the level of output , varying the product and increasing the advertisement expenditure .

THE REAL WORLD SCENARIO I HAVE SEEN , EXPERIENCED AND HEARD ABOUT IS -----

On 8th of November 2018 the time when government of India has taken the decision of DEMONETISATION in India . They decided to push out the black money from the nation and utilize it for the goodwill of the nation . Due to which people of the nation was suffering by standing in the long lines outside the banks and lack of money in hand due to which people was unable to do most of there day to day function . The flow of money reduced in the market and businessman was effected very badly . Most of the business were suffering lack of money and having the problem in doing the transactions .

At the time when every company was suffering and having the loss and the reduction in the value of the securities . RELIANCE JIO the company took the advantage of the demonetisation at that point of time and launched the product thats JIO . The sim of this company was for free at that point of time for around 3 months and due to which most of the population of India ran towards it and purchased for free . By this the company succeeded to create its goodwill in the market when the market was suffering the great loos and able to get the monopoly in the market and got to make the large number of customer in the market . This shows the action and the strategy made by the company at that time and got succeeded on this against the other players or the companies in the market .

Due to the gaining of the large no. of population in the market towards them they do have the other competitors in the market but due to the goodwill they have formed that time had made them to stand strongly in the heavy competition in the market . Due to the strategy and the right action at the right time by them helped them to win the good image in the market for long term .