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Wednesday, April 13, 2011

Game Theory – Cutting a Cake

Game Theory is a set of strategic models where hypothetical situations are simulated. The people who are part of the game will have to act in these situations and arrive at situations by making choices. The choice that one of the players makes is dependent on the choice the other players make. This makes Game Theory interesting and easily arrive at solutions in given conditions and situations.

There are a number of games in Game Theory. Some of the most popular are Prisoner’s Dilemma, which we have already discussed in our earlier articles. We shall discuss another game called Cutting a Cake.

Cutting a Cake

  • In this game, two persons A and B are given a cake and they will have to share the cake and they shall receive a fair share in the cake.
  • Here the problem is that if A is asked to cut the cake, there is a chance that he reserves the bigger piece for himself and give B the smaller piece.
  • Same is the case with B. If B is asked to cut the cake, he will do exactly as A.
  • So, the best solution to this problem is given as the person who is not cutting the cake will reserve the right to choose first. Here, the person will choose the bigger piece available and leave the smaller piece to the one who had cut the cake.
  • So, the person cutting the cake will cut the cake in such a way that either of them will get the maximum possible portion of the cake.
This article is in continuation with our previous articles on Economics which include: Prisoners' Dilemma, Economics Assignment help, Neoclassical Economics, Oligopoly

For more details on Economics you can visit our website at http://www.helpwithassignment.com/economics-assignment-help and http://www.helpwiththesis.com

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