Game theory in setting quantity oligopoly Essay Example for Free

Game theory in setting quantity oligopoly Essay Game theory is a formal study of conflict and cooperation in economics. In fact, it is usually concerned with predicting the real outcome of the games of strategy where the potential individuals have incomplete awareness about the others’ plans. The game theoretic concepts usually apply whenever the actions of several agents are interdependent. Probably, these agents are either, groups, individuals or firms. The concepts of game theory give a language to prepare a structure, analyze, and comprehend deliberate scenarios.          Game theory has straight relevance to the study conduct of the venture as well as the performance of the firms in oligopolistic markets. A good approach is the decisions that companies takeover pricing and levels of production. Also, how much money needs to be invested in research and development expenditure (Binmore, 1993).          Oligopoly is a type of imperfectly competitive markets. It has only a few sellers, provide a related or identical product to the buyers in the market. Collusion in economics is simply an agreement of two or more firms with an aim to exclude a couple of competing companies in the market so that may obtain high profits. It is clearly that competition in the oligopolistic markets reduces accelerating the performance of that collusion. For that reason many firms quit the marketing operations enhancing profitability to the relating competitors hence deteriorating their economic decisions. This results to complete dissolution of the firms. The output of the collusion increases since most of the firms have quit the market; others loosen their momentum to adhere to the upcoming changes launched in by the oligopolistic markets (Mertens, 1994). As a matter of fact, this becomes advantageous to the remaining firms in the market (Thomas, 2003).             It is noted that collusion is a characteristic trait of oligopolistic firms. Stiff competition and interdependent decision-making encourage oligopolistic firms to cooperate. In fact, one way to lessen the oligopolistic rival is joined together and meets targeted forces forming collusion. There are two main types of collisions in an oligopolistic market. Exclusively, include explicit collusion and implicit collusion. Explicit collusion is a type of collusion which has more two than firms in the same industry. It is formally agreed to control the market force on their own way whereas implicit collusion also more than two firms in the same business but informally they have the similar outlook in the market, habitually with nothing more than interdependent (Binmore, 1993).The price collusion is a form of criminal offense since several firms work as a team so as to keep the price of commodity high with an aim to receive huge income. The relating firms involved necessar ily try to chase out their competitor. History and impact of game theory          In 19th century, game theory was first discovered by one of the early inventors. Consequently, in 1838, the first publication was done by Antoine Cornet. In broad spectrum, he came up with well-formulated researchers on the Mathematical Principles of this kind of theory basing on wealth. He went further to illustrate more on the principles of the publication relating to the game theory. Notably, he tried to explain the underlying rules constituting the actual behavior of the duopoly in the discipline. Even though this publication was associated with the theory of Games and Economics character in 1944, it had the latest principles of game theory that were formulated in it. The game theory has been greatly applied to the behavior of producers with few or one competitor. This perspective of the game theory was conceived by Von Neumann in 19th century.          In macroeconomics, oligopolistic markets are characterized by a few, large firms and its differences from the other market structures as stated above. It is noted that more competitive markets in the firms are of smaller size and its firm’s behavior have slight or no effect on its close competitors. Besides this oligopoly markets changes its output, enlarge into a new market, provides modern services and even advertize. This will have a consequential impact on the market competitors, therefore, increasing the profitability. This enhances more power in the market operation hence deviating losses had to be encountered. For this reason, the firms in oligopolistic markets are always considering the act of their competitors when implementing their economic decisions. The oligopolistic owners strictly tackle any leakages in their market so that they may attain their set goals and formulated objectives. Information exchange in collusion         In broad spectrum, information is an essential tool in planning to come up with mature and complete mechanization of the involving firms. Basing this argument on the game theory, it is realized that in decision making, information is significantly employed. For that reason, a successful collusion in the oligopoly market has sophisticated means on how to underlie its perspectives in a manner that no rival firm come to know. Therefore, crude ideas empower any collusion with a vision to reduce their competitors in the market. Advances in economic theory have enabled the economists to set competitive distinctions between different types of information exchanged between the firms. The required beneficial effect on the consumers and potential side-effects for competition depend on the nature and characteristic of the information that exchanged and also the type of competition in the market. Therefore, it should be known that firm owns the secret in the industry such as firmâ €™s prices, sales, cost demand and other parameters.According to game theory, the competitors are not supposed to get any of this secretive information. Competition authorities are strictly suspicious when information is conveyed especially about prices and quantities because this information is normally significant for monitoring deviations from collusive arrangements and hence empowering collusion. Mostly exchange of information on the cost and demand is seen in another dimension and more favorably. However, information about the prices and quantities is used to convey information about the cost or demand in collusion. For instance, when the firms share information on the past or current prices and quantities inform other players about the demand in the market. This enables their rivals to obtain inferences on how to predict the future period which is against the game theory. Notably, this will weaken their collusion that later on begins to deteriorate in their existence in th e market. As a matter of fact, demand and cost information is useful since is the central element for predicting future demand.               Effective collusion needs good coordination that is well supported by the exchange of information about their plans. This monitors the performance of the collusion in some days to come. In so doing, their rivals will be unable to out-compete them. They become prominent in the market achieving their set goals and objectives. The aggregated information determines whether the collusion will succeed or not. This depends on how the decision making is done. The aggregated information means anonymous or individualized information. Probably, such information may be valuable to the firms. Therefore, it is necessary to know who or where a certain estimate has been made or whether it is enough to comprehend the private signals in the entire industry. In addition, information can be either private or public. The effects of information exchange extremely differ depending on whether the information is made public or kept private, especially in the industry that exchange inf ormation. The game theory does not support exposure of the firm’s intentions. Definitely, they try it, their rival players will come up with the newest perspectives to out-compete them. Therefore, this should be done privately for future success (Thomas, 2003).          It realized that if the information does not give rise to competition distress it will be definitely positive to welfare. Indeed, the usefulness from information exchange is large compared to its demerits. There are quite number of the ways in which information exchange is useful in the welfare. Information exchange is a great part of the discovery mechanism in the industry economy. This implies that through exchange of information in between the formed collusion encourages expansion of the market economy. It also improves investment decision and organization learning. It is only through information where collusion members come up with complete ideas to uplift their set goals. Information exchange also results to output adjustments and lowering search costs in the firm. In the world, information is really required about the demands and rival activities. Notably, the firms would have to become accustomed to the changing circumstances by a trial and error process. Inform ation exchange is a great tool in playing the role of uplifting market economy in collusion hence output in the firms. Impact of rational behavior in collusion            Rationality is one way of decision-making practice wherein a firm exercises prudent choice making that gives it a maximum amount of benefit. Rational behavior usually facilitates decision making that is not productive in collusion. But it only strives to achieve benefits that are mostly achievable in nature. This usefulness can be either monetary or non-monetary. The word monetary stands for finance activities whereas non-monetary is associated with non-financial activities in a company. Therefore, any successful firm considers the following perspectives. This kind of decision making may not possible return materially to the firms at that moment on (Chatterjee, 2014). Therefore, rational choice theory is an economic principle. It states that firms make prudent and logical decisions so as to attain a complete satisfaction in the firm due to its abundant benefits.            The output of collusion increases over time due to changes made in by the decision makers. The identified plans that based on rational behavior usually alter operation of oligopolistic market. Operations may greatly expand performance of the company undermining its valuable transactions. When the collusion need to uplift its operation have to be economical on the way do operate their activities so that can observe a slight differences. Notably, some measures need to be employed to overcome its competition from its rivals. The firms recruit innovative and competent staffs to invest great fortune in the organization.            Competent economists formulate ideas flourishing functionality of the collusion hence uplifting profits, quantity, and its dignity. This shows how game theory is significantly applied in the oligopolistic market basing on the rational behavior. It is preferably considered as a means of competition through decision making. This scares rival players in the market such that are unable to operate their firms. Due to this condition, many firms in the markets are readily to be dissolved. The cause of this is just continuous losses experienced on every end fiscal year resulting to dissolution.             According to game theory, rational behavior is greatly a crucial tool required to make decisions that are needed to eliminate relating firms in the market. Most importantly, competing firms’ quantity reduces as well as its income accelerates due to well-played game theory in the oligopolistic market. Mainly rationality has a positive impact to the prudent collusion. Therefore, game theory is correlated to rationality behavior as far as decision making is concern in an oligopolistic market as mentioned earlier. Only that rational behavior is conditions suitable for accomplishing this specified theory (Mertens, 1994). Even though, participating firms can employ it, frequently is determined by competency of the collusion. Impact of time horizon in the collusion             In economics, time horizon is also referred to as a planning horizon, is a fixed point of time in the future at which some activities will be evaluated. It is noted that is specified a time when all planned activities or processes are supposed to terminate. Therefore, time horizon is a vital condition to any successful stakeholders. It enhances a strict time layout on how to operate your business transactions before targeted deadline. This minimizes time wastage and considers it as a significant factor in implementing business laws. Actually, the set objectives and underlain goals, with the cooperation of competent experts in business, are easily achieved. Time horizon has optimum benefits to those who put it into consideration.             Collusions have unique pathways on how they operate their organizational activities. Additions to that have business ethics for guiding set goals to reach its financial year and attain them. For a successful collusion, time horizon is much in demand to eradicate other firms out of the market. Especially, it needs strictness so that the set firm’s goal is accomplished on reaching time horizon. It confers bright future to competing firms enhancing increased output in the collusion. Time horizon sharpens performance of the most firms with an aim to make more profits in their organizations. Similarly, time horizon is a beneficial condition on practicing game theory in an oligopolistic market. It creates immense difference in the industry. The time horizon can be a month, a week or a year depending on the decision of the firm (Mertens, 1994).Broadly, time horizon is a viable and secret â€Å"tool† that empowers collusion to diminish performance of its riv als in the industry. Eventually, it becomes determinant condition in collusion leading the business to enjoy huge profits and crude output. Collusion lowers its products’ price encouraging more sales whereas its rivals remain constant to the initial price. Cost is usually lower hence encouraging more sales due to high demand. The collusion stagnates in the same price until time horizon comes. At that planning horizon, several firms would have left the industry enabling collusion with uncompetitive environment to work on (Chatterjee, 2014). Conclusion             In broad spectrum, game theory deals with decision making that reinforce competition perspectives in the market. It is kind of a game whereby participating individuals hide their intentions purposely to win over the other. In this case, information, rationality, and time horizon are determinant conditions that boost succession of collusion in an oligopolistic market. It signifies that to acquire viable benefits in the market has to employ well-formulated conditions.Therefore, cost, demand, and quantity differ from relating firms in the industry. Strictly, collusion tries to lower its prices with an aim to increase its output and eliminate the number of firms in the industry. Similarly, quantity in the industry increases with increased prices from other firms. Due to that reason number of consumers in those firms reduces joining newly formed collusion. This enforces rivals to reduce its prices of their products leading to uncountable losses hence leading to collaps ing of many firms. The collusion succeeds its target of eliminating other firms from the industry henceforth starts enjoying oligopolistic benefits including profits. Reference Binmore, K. (1993). Frontiers of game theory. Cambridge, Mass. [u.a.: MIT Press Telser, L. G. (1971). Competition, collusion, and game theory. London: Macmillan. Chatterjee, K., Samuelson, W. (2014). Game theory and business applications. New York: Springer. Mertens, J.-F., NATO Advanced Study Institute on Game-Theoretic Methods in Economic Equilibrium Analysis. (1994). Game theoretic methods in general equilibrium analysis: [proceedings of the NATO Advanced Study Institute on Game Theoretic Methods in General Equilibrium Analysis, Long Island, NY USA, July 1 12, 1991]. Dordrecht [u.a.: Kluwer. Thomas, L. C. (2003). Games, theory and applications.Voigt, S., Schmidt, A. (2005). Making European merger policy more predictable. Dordrecht: Springer. Source document

Evelines Decision in James Joyces Dubliners Essay -- Joyce Dubliners

Eveline's Decision in James Joyce's Dubliners      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the short story, 'Eveline,' James Joyce introduces us to the life of a young woman named Eveline. She has the opportunity to escape with Frank, the man she thinks she loves, to a faraway country in search of a new life.   Instead, she decides to stay in the dreary and gloomy life she already knows.   To understand Eveline's final decision to stay we have to analyze the reasons that prevent Eveline from pursuing a better life. Her fear of the unknown; the fact that she does not know Frank well enough; and the many attachments she has to her home, prompt Eveline to make her decision.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The first reason for Eveline to stay is that she is does not have the courage to leave.   She   tries to convince herself that her life is not ? wholly undesirable,? but Joyce reveals how hard and undesirable her life actually is when he tells us that she ?felt herself in danger of   her father's violence.?   She gets ?palpitations? because she is so afraid of her own father.   Although he beats her and treats her badly, she still thinks that ?sometimes he could be very nice,? just because she remembers him making her laugh once, and other time when he took care of her when she was sick.   These good memories about her father look insignificant compared to what she has to do for him.   Eveline also has to support the mistreatments of her abusive father even when she is asking him for money to buy groceries.   Especially on Saturday nights when he is   ?usually fairly bad,? meaning he is drunk.   Eveline alone asks herself   if it is wise to leave.   She thinks that at her home she has ?shelter and food; she had those whom ... ...irl, is protected by her mother. Memories make Eveline feel more emotionally attached to her home. Although her favorite brother, Ernest, is dead, she still cares about Harry.   She has to many duties in the house.   She has to take care of two children, take care of the house, and her abusive father.   All because of the promise she made to her dying mother to ?keep the home together as long as she could.?   The love for her mother is too strong to break that promise.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In conclusion Eveline chooses the 'odour of dusty cretonne' over a new, but unknown life because the reasons for staying slightly overwhelm the reasons for leaving.   For this era her decision might seem bizarre or even foolish; but making that decision she does what is logical for that epoch. Works Cited Joyce, James Dubliners, New York:Penguin, 1993

A visit to the art institute of chicago museum

On South Michigan Avenue, stands the Art Institute of Chicago Museum. One of the first things that I noticed and one problem that I encountered is that The Art Institute of Chicago does not have its own parking lot. Good thing there are public garages nearby.   Ã‚  Ã‚  Ã‚  The Art Institute has an â€Å"H† shape, if one will imagine from a bird’s-eye-view.   It is a three-storey building housing work spaces, study rooms, auditoriums and enclosed galleries. But what will truly stand out are its vast collections of paintings, sculptures, photographs, videos, textiles, and architectural drawings. (The Art Institute of Chicago 2005). I was simply impressed with the exhibits. I marveled at the extensive and interesting collections there. As evident on the other people’s reactions, I think they felt the same way. Different reactions and moods were elicited from each of the art pieces. The exhibit about the Icons of Divinity from South and Southeast Asia caught my interest. This focused mainly on the art of the Hindus and Buddhists. The images display complex ideas about divinity. And it is always appealing to learn about the art of other cultures. Another is the exhibit featuring the different treatments in the works of Harry Callahan, a photographer. (The Art Institute of Chicago 2005). The ‘Portrait of Cardinal Zelada’ by Anton Raffael, for me, presents the subject as someone dignified and regal. Emphasis is given on the position of the subject, sitting upright. The eyes and the small smile forming on the subject’s lips may also signify the graciousness of the subject. The artist may be portraying the righteousness and the nobility of the cardinal. I would also probably choose Anton Raffael to do my portrait. I would like my natural traits to be showed in the portrait, with more emphasis on the good characteristics. ‘Day of the Gods’ by Paul Gauguin and ‘Charity’ by Francesco de Mura both depict female nudes. Gauguin’s work has more eroticism in it than that of de Mura’s. That is because ‘Day of the Gods’ puts more emphasis on the physical beauty of the female, a Tahitian female in particular, than the other work. De Mura’s ‘Charity’, on the other hand, seems to dwell on motherhood and motherly love, thus, less erotic. I think the impact of eroticism is that it makes the visuals more attractive. Most people admire the physical beauty of the woman. Depicting and emphasizing that in the painting will draw more people into looking and appreciating the work of art. And lastly is the seascape, ‘The Beach at Sainte-Adresse’ by Claude Monet. The painting seems to express melancholy. Elements that point to such are the muted colors, the couple seated on the beach watching a regatta sail away, the coarse texture of the sand and the density and grayness of the sky. (The Art Institute of Chicago 2005) Even if only one of these parts is to be deleted, the message of the painting is not as full anymore. For instance, if the colors of the sky are changed into brighter hues, the painting won’t be so gloomy anymore. Or if the silhouettes of the sailboats are rubbed out of the painting, it won’t seem as though many people are sailing away. This just proves that all the elements in a painting contribute to the desired effect that an artist wants to show. Work Cited: 2005. The Art Institute of Chicago. http://www.artic.edu (accessed August 1,2006).      

Dissecting the Ideology of Satire Essay - 1294 Words

John Marwood Cleese, an English actor, comedian, writer and film producer said, â€Å"If I can get you to laugh with me, you like me better, which makes you more open to my ideas. And if I can persuade you to laugh at the particular point I make, by laughing at it you acknowledge its truth†. The point he brings up is the ideology of satire. Satire, by definition, is a technique utilized by writers to expose and criticize foolishness and corruption of an individual or a society. This can be done by using humor, irony, exaggeration or ridicule (Satire - Definition and Examples, para.1). Often times, the humor used opens the audiences’ minds to the underlying problem that the writer is trying to reveal. By examining the purpose and methods of†¦show more content†¦Humor and ridicule are weapons for Juvenalian satire; it is angry, caustic, resentful, and personal (â€Å"Understanding Satire†, para. 1). On a more positive note, Horatian satire is a form of l iterary satire in which the author light heartedly pokes fun at human nature, less harshly. The emphasis is on humor, but still identifying the topic the author wants the audience to become aware of. An example of Horatian satire would be Jane Austens’ Pride and Prejudice, which lightly teases at the idea of other women’s literature of that time period. A Modest Proposal, on the other hand, would be a form of Juvenalian satire (â€Å"Understanding Satire†, para. 3). Satire in literary works The use of satire in literary works has always been a part of our culture, as well as other cultures of the world. Satire isn’t focused on how the author satirizes, but rather, what is being satirized. The goal is for the audience to think more about a topic, and as previously stated, can be done in many forms. First, in the novel Lord of the Flies, Golding uses satire to pinpoint a problem that is currently going on in our nation. Being a naturalist himself, his purpose of the novel is to †trace the defects of society back to the defects of human nature† (Fernandez, para. 1). The characters support this idea; each of the boys is a metaphor for in which Golding makes his comments about the way he sees the world. Golding isn’t interested in theShow MoreRelatedMonty Python And The Holy Grail 1975 Directed By Terry Gilliam And Terry Jones2247 Words   |  9 Pagesdiscourses. Thus it does not have a clear theoretical approach to be applied to. In a sense, the film makes a mockery about a supposition or a system of ideas intended to explain something. In other words it possesses an attitude of skepticism on ideologies, enlightenment, reality and rationality. So because of this, will be analyzing about Monty Python and the Holy Grail characterization of subjectivity. The movie was born in an era of Postmodernism in the late 1960s. Postmodernism can be describedRead MoreHumanities11870 Words   |  48 Pagesappreciation There are many ways of approaching the subject of art appreciation. Over here I shall introduce to you a set of strategies to get you started. Take note that this is just one set of strategy, there are many other different ways of dissecting art. 1. Subject matter: What is the subject matter of the art work about? Usually a work of art will have a main theme, which can often be known through its title. Almost anyone can create an idea or a theme in his/her own mind. But what