Review article

BASIC CONCEPTS OF THE GAME THEORY IN INTERNATIONAL ECONOMY

Luka Brkić ; Faculty of Political Science, University of Zagreb, Zagreb, Croatia

Abstract

The game theory as a theory of interactive decision-making formalizes the modeling of social processes by creating an analytical basis for analyzing decision- making in the circumstances of risks, and the actors’ cooperation or non-cooperation. The concepts of the core, Nash and Stackelberg’s equilibrium, stohastic and differential games, transferable utility, cooperative and non-cooperative games, illustrate the scope of issues in international economy that are applicable to the game theory. The author analyses several instances of the game theory in international economy: various national tariff policies and the creation of tariff unions; international cartels; extraction of the resources of joint property; coalitions and international negotiations. The author presupposes a smattering of knowledge of the game theory technique; as far as possible, the analysis is carried out non-technically.

Keywords

cooperative and non-cooperative games; core; Nash and Stackelberg equilibrium; stohastic and differential games; transferable utility

Hrčak ID:

23676

URI

https://hrcak.srce.hr/23676

Publication date:

5.3.2003.

Article data in other languages: croatian

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