The application of the game theory on microeconomic problems illustrations

Abstract

In this work the authors present and analyze some possibilities of applying the game theory to solve economic problems, primarily microeconomic ones. The first example to illustrate the applications of the game theory gives the solution of alternatives of two companies for computer production in strategic decision-making for using the joint operative system. Alternative possibilities of companies' decision-making and repercussions of their decisions on companies' profit have been considered in the variant both of imperfect and perfect information of companies (players). In the second part of the work, authors analyze possibilities to attain the Nash equilibrium, according to the minimax criterion on the well-known example of the so-called prisoner's dilemma. At the end, by the application of the game theory, an answer is looked for the question why the people do not pay tax voluntarily; the authors also consider the duopolist's dilemma on decision-making about to give up cartels.