Abstract

GORBANEFF, Yuri. Game Theory as applied to Administration. Innovar [online]. 2002, vol.12, n.20, pp.35-44. ISSN 0121-5051.

Game theory is being increasingly used in economics and administration, as it helps in understanding and prognosticating reality. Its application in administration is concentrated in three areas: organisational strategy, structure and behaviour. It is used in an academic plane for posing hypotheses and testing internal coherence. However, there are very few reports in the literature of cases regarding its practical use by managers. They treat games as being more of a barrier than a useful tool; this happens because it is difficult in practice for administrators to pro pose a model from a real situation. This article tries to overcome this and propases so me principies for creating game models. Such principies are based on the theory; they are algo intuitive and understandable for those people who have no mathematical preparation.

Keywords : Game theory; economic models.

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