Economics Essay Example | Topics and Well Written Essays - 2500 words - 6

Economics - Essay Example Next it delineates the strategic choices at the disposal of corporate entities in the process of planning and policy making. The study also focuses on the strategic significance of the changes that have taken place in the corporate environment over the years since the times of such catchy phrases like Schumacher’s â€Å"small is beautiful†. According to the lead article in the Economist on the 29th of August 2009 big corporate entities are coming in to vogue again because they have discovered a master strategy to survive in the all too important strategic competitive environment. By extension environmental factors play a very significant role on the corporate strategy and policy making environment. The extent to which such environmental factors play a role in determining the directional thrust of the corporate strategy of the big business corporation concerning competition and corporate social responsibility (CSR) can be known through an analysis of the theoretical approaches recommended by modern management gurus. This paper would adopt the five principle environmental factors suggested by Pearce & Robinson (2002). The authors suggest a theoretical framework of five significant environmental factors in order to enable leaders and managers of corporate entities to understand the nature and the extent of the impact that environmental factors have on business organizations. Above all according to the authors big businesses are more and more affected by them. Customers are very important for the business organization in determining its corporate strategy. For example customers can either make or break a business organization on the basis of demand. The emerging big corporate entity depends on customers’ perceptive behavior to such an extent that the former has very little freedom in deciding the corporate strategy and production policy in any other possible way. The purchasing power of the modern customer is unlimited

Game Theory for Applied Economists Essay Example | Topics and Well Written Essays - 3000 words

Game Theory for Applied Economists - Essay Example This is very helpful in the formulation of the necessary strategies of the business. EXAMPLES OF GAME THEORY-EARLY CONTEXT AND DEVELOPMENT One of the earliest examples of game theory can be seen in the studies of Antoine Cournot in the year 1838. It studied the example of duopoly in the context of a formal type of game and theoretical analysis. The formal theory for the games was brought into the forefront by the mathematician Emile Borel, who had the suggestion of a formal theory of the games by the year 1921.It, was further developed by the likes of mathematicians like John von Neumann in the year 1928. The field of game theory was established as an entity in its own right after the publishing of seminal book called as Theory of Games and Economic Behavior by the likes of Vo Neumann and the economist known as Oskar Morgenstern (Binmore 114). It also received a lot of fillip from the studies of mathematician John Nash who demonstrated that the finite games have any equilibrium, wher ein all the players choose the option that is best for them keeping in mind the action of the fellow players. This is a fundamental unit of the design element that can be seen from the studies of these individuals. This concept of non-cooperative game theory was broadened by the application in the year 1950 and 1960’s. t has always been a central point for discussion. It has been applied to the areas of politics and war. This is one of the centralized concepts of this theory. It has also been accepted in the fields of sociology and physiology. It is also seen in the field of biology. These are some of the common points of the relationship that find mention in the development of theories. It received a lot of attention with the awarding of the Nobel Prize in the field of economics to the likes of Nash, John Harsanyi, and Reinhard Selten. At the period of 1990, it was seen that the game theory was being increasingly used in a number of the fields. It is being prominently used i n for the designing of auctions. It is being designed in such a manner that there is the distribution of maximum benefits for the population. It has also developed a level of understanding in terms of the number of the division of electromagnetic spectrum to the telecommunication firms. The usage of this theory has helped in raising billions of dollars in a number of governments. GAME THEORY AND INFORMATION SYSTEMS The level of internal consistency and the basis of mathematics make it one of the primary tools of the modeling and design of many of automated processes of decision making as a part of interactive environments (Fudenberg and Tirole 173). As for example, one of the examples was setting up of efficient rules for the bidding process, websites, and the generation of tamper proof negotiation that is useful in the purchase of communication bandwidth. The automation of strategic choices is necessary for making the choices to be robust in nature. This is helpful in the avoidance of any kind of manipulation in the process of bidding and guards against any kind of abuse form any of the users. The strength of game theory comes from the process of structuring the problems in a way that all the options become clear.