Game Theory: Validity and Limitations

In the search for a greater understanding of the situations in which two or more individuals with different interests, attempt to achieve their objectives through a finite number of strategies, game theory has become an indispensable analytic tool for the resolution of these kinds of problems, & has a specially preponderant role in both economic analysis, & the managerial & business strategy field. Because of this, & within the existent global debate as to the repercussion of game theory, this documentary essay attempts to offer, from the perspectives of Nalebuff (1997) & Shubik' s (1959), some theoretical reflections which contribute to a greater understanding of the reach & limitations of this proposal. In this sense, game theory presents, within its relevant limitations, the possibility of considering individuals as hyper-rational entities that make decisions following a pre-established mathematical framework. References. Adapted from the source document.