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As Myerson explains in the American Economic Review, the foundations of the game theory were first arisen when mathematicians were looking from an “abstract generality†view of math to describe economic tactics. In that idea of abstract generality, the game is only a theoretical model. To explain the game, it is played between two firms where each player either plays a low price or a high price with the goal of making the largest net sum of income...
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As Myerson explains in the American Economic Review, the foundations of the game theory were first arisen when mathematicians were looking from an “abstract generality†view of math to describe economic tactics. In that idea of abstract generality, the game is only a theoretical model. To explain the game, it is played between two firms where each player either plays a low price or a high price with the goal of making the largest net sum of income...
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