Strategic games and bargaining

Hello Naveen Thevar,

In accordance to your outcome, Nash equilibrium is a concept of game theory where the result of the game is where no player has a choice to turn away from the strategy chosen after looking at the decision of the opponent. Sequential move game is where a player comes first in determining their actions. Simultaneous-move game is where players make their moves without knowing the other player’s actions (Dixit, 2015). Prisoners dilemma is a situation where two parties are acting on their self-interest and do not come out with an outcome..

Bargaining can be classified into two views strategic and non-strategic view of bargaining. According to the strategic perspective, bargaining is a game of simultaneous and sequential moves. Players can gain an advantage by taking the first move in this view of bargaining or by sticking to a strategy they committed to (Lewis, 2008). The most important factor of a strategic perspective is that the regulations of the game are clear. The non-strategic view says that any significant outcome of bargaining would split the profits from the business. It does not depend on the rules of bargaining that’s why it’s non-strategic. The holders lose the input margin, which is lesser than what the players lose.

References

Dixit, A. K. (2015). Games of Strategy: Fourth International Student Edition. Chicago: WW Norton & Company.

Lewis, J. (2008). Strategic bargaining, norms and deliberation. In Unveiling the Council of the European Union, 165-184.