CHAPTER a number of players. b. Countries are



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1.    Significance of the study

Game theory, a branch of applied
mathematics that is used in the social sciences, most notably
in economics, biology, engineering, political science, international
relations, computer science, and philosophy attempts to
mathematically capture behavior in strategic situations or games, in which
an individual’s success in making choices depends on the choices of others.
While initially developed to analyze competitions in which one individual does
better at another’s expense (zero sum games), it has been expanded to treat a
wide class of interactions, which are classified according to
several criteria. Today game theory is widely used in the business for
solving situations in which there are a number of players.

Countries are using the science of Game Theory to help them make
complicated strategic decisions in this highly competitive market with least
possible risk. History of Modern Game Theory is more than 50 years old and has
demonstrated an ability to generate the ideal strategic choice
in a variety of different situations, companies and industries. Principles of
game theory are applied through the use of strategy games. 

Game Theory is basically denoting on study of mathematical model of
differences and cooperation between intelligent balanced decision-makers. Game
Theory enables universal mathematical techniques for analyzing situation which
individuals or competitors in same segment make decision that will influence
one another’s interests. As such, game theory offers impending of essential
importance for scholars in all branches of the social science, as well for
practical decision-makers. The situation that game theories studies are not
just spare time activities, as the term game might unfortunately suggest.
Conflict analysis or interactive decision theory might be more descriptively
precise names for the subject.

Applications of Game theory.  A powerful tool for predicting outcomes of a
group of interacting firms where an action of a single firm directly
affects the payoff of other participating players, enables a
company to formulate their optimal strategy. It is Ideal for strategic
situations where competitive or individual behaviors can be modeled. For example: 

a.    Auctions
(sealed project bids).

b.    Bargaining
activities (union – management negotiations).

c.    Product
decisions (entry or exit markets).

d.    Principal-agent
decisions (compensation negotiations, supplier incentives).

e.    Supply
chain design (capacity management, build vs outsource decisions).

Multiple strategy games are analyzed
to model different competitors, various payoffs and potential
strategies.  The objective of these games is to deliver fol:

a.    A
recommended set of strategic decisions to guide competitive behavior to a
desirable outcome, and;

b.    An
analysis of how a series of possible strategic moves can predict various
competitive outcomes. 

c.    Various
types of games can be used and analysed based on the strategic situation, the
number of players, the amount of information available and the timing

4.    Prisoner’s
dilemma. Prisoner’s dilemma is a situation which depicts the
movements of the participants for a particular motive. Basically there are two
or more players who try to move to different segments to archive profit than
their competitors or other participants. This situation would be more clear
with the assistance of 2 by 2 matrix games. They have the minimal configuration
necessary to be a game, which are two player with each two decision
possibilities. These games can easily be examined and displayed in a matrix.
The most famous 2-by-2 matrix example in this context is the Prisoner’s
dilemma. It is one of the most interesting games which game theory has to offer
and at the same time deals with one of the most interesting thing of social
science like the interaction of individual and society. Two criminals commit a
bank robbery and are arrested by police. The police do not have sufficient
evidence to prove their crime. In this situation they use game theory to prove
it. Basically they separated them in two cells and visit each of them and offer
the same deal. If you confess and your accomplice remains silent, he gets the
full 5 year punishment and you go to free as principal witness. If he confesses
and you remain silent, you get the full 5 year punishment and he goes free. If
you both stay silent, all we can do is give you both 1 year for a minor charge,
which is illicit possession of firearms. If you both confess, you each get 4 years

5.    Dominant Strategy. A
strategy is dominant if, regardless of what any other players do, the strategy
earns a player a larger payoff than any other. Hence, a strategy is dominant if
it is always better than any other strategy, for any profile of other players’
actions. Depending on whether “better” is defined with weak or strict
an inequality, the strategy is termed strictly dominant strategy or weakly
dominant. If one strategy is dominant, than all others are dominated. For
example, in the prisoner’s dilemma, each player has a dominant strategy. To execute the game is by categorizing two player or
competitors involving in the game and each player form the alternative strategies
to perform well. In case of two player game, the action of first player from
the rows, and the actions of the second one in the columns of given matrix. This
case is demonstrated by two players who are caught for a crime by police. Each
suspect is placed in different cells and offering to confess.

6.    Classification of
game theory. There are basically three types of games
classifications. It is always in the best interest of all countries to avoid
the collision and If they have to avoid the collision each of them has three

a.    move

b.    move

c.    maintain


Methodology. The tactic for collection of data and its analysis is methodological and
permits more flexibility then quantitative research. The data is gathered in
textual format on the basis of observations and interactions with the
participants.for instance through
participant observation, in-depth interviews and focus groups. It is not
converted into numerical form and is not statistically analyzed.

8.    Research questions

Game-theoretic Understanding of India-Pakistan Relations?

Is Game theory useful to bring Crisis

Can Pakistan and Indian find resolution of Kashmir dispute through Game




scientific hypothesis of Game theory was developed by John von Neumann and
Oskar Morgenstern (1944). For explanations to be talked about later,
impediments in their numerical system at first made the hypothesis pertinent
just under uncommon and constrained conditions. This circumstance has drastically
changed, in ways we will analyze as we come, in the course of recent decades,
as the system has been extended and summed up. Refinements are as yet being
made, and we will survey a couple of exceptional issues that lie along the
propelling front edge of these improvements. Nonetheless, since 1970s it has
been conceivable to state with certainty that Game hypothesis is the most
imperative and helpful device in the analyst’s pack at whatever point he/she
faces circumstances in which what considers one specialist’s best activity (for
her) relies upon expectations about what one or more players will  do, and what is considered as their best
actions (for them) similarly rely upon expectations about him/her.

Notwithstanding the way that Game hypothesis has
been rendered numerically and coherently precise just since 1944, diversion
theoretic experiences can be found among analysts backpedaling to antiquated
times. For instance, in two of Plato’s messages, the Laches and the Symposium,
Socrates reviews a scene from the Battle of Delium that a few observers have
translated Game hypothesis.

Long before game theory had come along to
show analysts how to think about this sort of problem systematically, it had
occurred to some actual military leaders and influenced their strategies. Thus
the Spanish conqueror Cortez, when landing in Mexico with a small force who had
good reason to fear their capacity to repel attack from the far more numerous
Aztecs, removed the risk that his troops might think their way into a retreat
by burning the ships on which they had landed.

12.     Some time before Game hypothesis had come
along to demonstrate to experts generally accepted methods to consider this
kind of issue efficiently, it had jumped out at some genuine military pioneers
and impacted their systems. Subsequently the Spanish vanquisher Cortez, when
arriving in Mexico with a little power who had justifiable reason to fear their
ability to repulse assault from the far more numerous Aztecs, expelled the risk
that his troops may think their way to retreat by burning the ships on which
they had arrived made use of game theory in the war.




13. Research Methodology. This
portion of study will elaborate the modality of the study and the type of
research methodology used in this study. This chapter will describe the study’s
population, sampling, philosophy and will also explain the methods and
approaches used to conduct this research. Moreover, in this chapter, the
research design will be carefully studied as well as the sampling techniques
and instruments used in this study

14. Research Philosophy. So as to comprehend the dispute on the Game theory,I
drew many qualitative readings trusting on evocative data based on past
abstracts and assertions by each of  the
applicant countries. For sustenance my report I searched help from manifold

Design. The research design for this Individual Research
paper is appended for developing a conceptual framework. The foremost step was
to carry out an in depth analysis of previous literature review on the topic.
In order to make a review of previous studies or data on concern issue,
different academic databases were used and number of scholarly articles were
read. Besides this, different books, journals related to the topic were
reviewed. The data for all this was all gathered from secondary sources in
order to gain imperative information prevalent to the aforementioned concern.

of the study. All-out effort and strive were made for finding and consulting
impartial, authentic and diverse sources for gaining authentic information on
the mentioned subject. Sources of Wikipedia are used

1K. Yasukawa,”Game theory, Science direct, Accessed date 12 Oct 2017


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