Game Theory. Developed by John Von Neumann and Morgenson, this is a mathematical theory applicable to competitive business problems. This technique deals with situations where two or more (finite) individuals are making decisions involving conflicting interests. However the final decision of the parties concerned. The basic assumptions made are that every competing party will adopt the policy most unfavorable to us and therefore we are required to select the best position among the worst positions. In such situations, one s favorable item is unfavorable to other.
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