Negotiation: Game Theory
Negotiation | | The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation. | |
Negotiation | | The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation. | |
Quentin Dutartre
Yash Ruia
Damien Canneva
Kilian Bus
Emilien Allier
David Schil
Quentin Dutartre
Yash Ruia
Damien Canneva
Kilian Bus
Emilien Allier
David Schil
Contents Introduction 2
What is the Game theory? 2
Theory 4 Making commitments: promises and threats 4 Basic situation 4 Unique Win/Win situation 5 Commitments and side payments 5 Prisoner’s dilemma 7 The Simplest Game: Two Person with a Fixed Pie 8 Tacit Barganining 8
How to act during a negotiation 9 Breakthrough Strategy 9 Tactics 10
Limits 11 The modelisation 11 The interpretation 12
Conclusion 13 Sources 13
Introduction
Our group decided to work on the topic three: “The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation”. The modern Game Theory was created in 1944 with the book “Theory of games and economic behavior” by Oskar Mogenstern and John Von Neumann. It was also developed a lot in the 1950’s with several studies by John Nash. After our seminary about negotiation we thought it would be very interesting to make some research about the Game Theory. Indeed, we made some researches on the Game Theory in our first year in IÉSEG in our economic classes. That is why we were a bit surprised to see that this theory could be also used in a negotiation process to analyze it. It seems to be obvious that using the concepts of that theory could change the course of a negotiation and be understood as a
Negotiation | | The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation. | |
Quentin Dutartre
Yash Ruia
Damien Canneva
Kilian Bus
Emilien Allier
David Schil
Quentin Dutartre
Yash Ruia
Damien Canneva
Kilian Bus
Emilien Allier
David Schil
Contents Introduction 2
What is the Game theory? 2
Theory 4 Making commitments: promises and threats 4 Basic situation 4 Unique Win/Win situation 5 Commitments and side payments 5 Prisoner’s dilemma 7 The Simplest Game: Two Person with a Fixed Pie 8 Tacit Barganining 8
How to act during a negotiation 9 Breakthrough Strategy 9 Tactics 10
Limits 11 The modelisation 11 The interpretation 12
Conclusion 13 Sources 13
Introduction
Our group decided to work on the topic three: “The use of Game Theory could be a powerful force in negotiation. Investigate the different ways that Game Theory can be used or manipulated to change an outcome in a negotiation”. The modern Game Theory was created in 1944 with the book “Theory of games and economic behavior” by Oskar Mogenstern and John Von Neumann. It was also developed a lot in the 1950’s with several studies by John Nash. After our seminary about negotiation we thought it would be very interesting to make some research about the Game Theory. Indeed, we made some researches on the Game Theory in our first year in IÉSEG in our economic classes. That is why we were a bit surprised to see that this theory could be also used in a negotiation process to analyze it. It seems to be obvious that using the concepts of that theory could change the course of a negotiation and be understood as a