Anke Steinmetz

An investigation of strategic decision making in Swedish and German companies based on Game Theory Anke Steinmetz

Diplomarbeit, die am 01.08.1998 erfolgreich an einer Fachhochschule f?r Wirtschaft in Deutschland im Fachbereich European Management + Controlling eingereicht wurde. Abstract: Game theory was established by the mathematician John von Neumann (1903 to 1957) and the economist Oskar von Morgenstern (1902 to 1977), who in 1944 published a - among game theorists - very well known work of literature called Theory of Games and Economic Behavior. However, in his book Spieltheorie und ?konomische (Bei)spiele, Werner G?th regards game theory not exclusively as an economic discipline, although fundamental concepts of game theory have been inspired by economic questions and have been developed by economists. Regarding game theory, there are numerous applications in the areas theoretical economy, operations research, statistical decision theory, marketing, politic and military science, insurance mathematics, sociology and psychology. Aim of the dissertation is to give a general overview on game theory and especially to answer the following questions by analysing the Swedish and German replies of the questionnaire: 1. Do strategic deciders of large companies know about game theory and do they use it as a strategic tool? 2. What is the percentage of managers who are able to give correct answers when they are confronted with certain game situations? 3. Are there any links between the characteristics of the manager and their ability to give correct answers to the game situations? 4. Is it possible to find any differences between German and Swedish manag ers regarding 1,2 and 3? The dissertation does not contain all parts of game theory. Only aspects the authors think to be the most important in connection with economy will be discussed. Table of Contents: 1.|INTRODUCTION|1 2.|THEORETICAL FRAMEWORK|2 2.1|FUNDAMENTAL DEFINITIONS|2 2.2|ECONOMIC RELEVANCE|3 2.3|FORMAL REPRESENTATION OF GAMES|4 2.4|SOLUTION CONCEPTS|12 2.5|STRATEGIC