Economics Of Game Theory
Consider this :
Could Western management techniques be successfully implemented in the countries of Central and Eastern Europe (CEE) Granted, they have to be adapted, modified and cannot be imported in their entirety. But their crux, their inalienable nucleus ? can this be transported and transplanted in CEE Theory provides us with a positive answer. Human agents are the same everywhere and are mostly rational. Practice begs to differ. Basic concepts such as the money value of time or the moral and legal meaning of property are non existent. The legal, political and economic environments are all unpredictable. As a result, economic players will prefer to maximize their utility immediately (steal from the workplace, for instance) ? than to wait for longer term (potentially, larger) benefits. Warrants (stock options) convertible to the company?s shares constitute a strong workplace incentive in the West (because there is an horizon and they increase the employee?s welfare in the long term). Where the future is speculation ? speculation withers. Stock options or a small stake in his firm, will only encourage the employee to blackmail the other shareholders by paralysing the firm, to abuse his new position and will be interpreted as
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