Grey Game Theory and Its Applications in Economic Decision-Making

by Zhigeng Fang, Sifeng Liu, Hongxing Shi, Yi Lin

Overview

To make the best decisions, you need the best information. However, because most issues in game theory are grey, nearly all recent research has been carried out using a simplified method that considers grey systems as white ones. This often results in a forecasting function that is far from satisfactory when applied to many real situations. Grey Game Theory and Its Applications in Economic Decision Making introduces classic game theory into the realm of grey system theory with limited knowledge. The book resolves three theoretical issues:

• A game equilibrium of grey game
• A reasonable explanation for the equilibrium of a grey matrix of static nonmatrix game issues based on incomplete information
• The Centipede Game paradox, which has puzzled theory circles for a long time and greatly enriched and developed the core methods of subgame Nash perfect equilibrium analysis as a result

The book establishes a grey matrix game model based on pure and mixed strategies. The author proposes the concepts of grey saddle points, grey mixed strategy solutions, and their corresponding structures and also puts forward the models and methods of risk measurement and evaluation of optimal grey strategies. He raises and solves the problems of grey matrix games. The book includes definitions of the test rules of information distortion experienced during calculation, the design of tokens based on new interval grey numbers, and new arithmetic laws to manipulate grey numbers. These features combine to provide a practical and efficient tool for forecasting real-life economic problems.

Product Details

ISBN-13:	9781420087390
Publisher:	Taylor & Francis
Publication date:	08/26/2009
Series:	Systems Evaluation, Prediction, and Decision-Making
Pages:	360
Product dimensions:	6.12(w) x 9.19(h) x (d)

About the Author

Zhigeng Fang is professor and doctoral tutor at the College of Economics and management, Nanjing University of Aeronautics and Astronautics (NUAA), China. From 1996 to 1999, he studied at Xi’an University of Technology, earning a master’s degree in management science and engineering management. From 2003 to 2007, he attended NUAA, earning a doctoral degree in systems engineering. His academic part-time positions include under-secretary-general of IEEE International Professional Committee of Grey Systems; governor of the Chinese Society for Optimization, Overall Planning and Economic Mathematics; managing director of Complex Systems Research Committee; secretary-general of Grey Systems Society of China; under-secretary-general of the Systems Engineering Society of Jiangsu Province, China; deputy director of the Post-Evaluation Research Center of Jiangsu Province; deputy director of the Grey Systems Research Institute of NUAA. He is a member of Services Science Global and the Services and Logistics Technical Committee of IEEE Intelligent Transportation Systems Society. His main research directions lie in the fields of theory and methods of uncertain prediction and decision, Grey game theory, applied economic, and energy economics.

Table of Contents

Study of the Grey Matrix Game Model Based on Pure Strategy. Pure Strategy Solution of a Grey Matrix Game Based on an Interval Grey Number Not to Be Determined Directly. Grey Matrix Game Model Based on Grey Mixed Strategy. Study of Elementary Transformations of the Grey Matrix and the Invertible Grey Matrix. Matrix Solution Method of a Grey Matrix Game. Potential Optimal Strategy Solution’s Venture and Control Problems Based on the Grey Interval Number Matrix Game. Concession and Damping Equilibriums of Duopolistic Strategic Output-Making Based on Limited Rationality and Knowledge. Nash Equilibrium Analysis Model of Static and Dynamic Games of Grey Pair-Wise Matrices. Chain Structure Model of Evolutionary Games Based on Limited Rationality and Knowledge. Bounded Rationality Grey Game Model of First-Price Sealed-Bid Auction.

What People are Saying About This

From the Publisher

... an excellent introductory graduate and undergraduate level text on grey game theory and its real applications in economics, management and system engineering. … This book deserves the highest rating possible because a big percentage of the actual economic problems are based on a wrong decision. ... a valuable and timely addition to the current literature on game theory. It is well-written and clearly organized with excellent figures. The style and the presentation of the text provide the reader with a broad overview of recent progress in the lively and challenging field of game theory and its applications in economic problems. This book is highly recommendable to anyone, a graduate student, a researcher or a professor who studies game theory or a director of a society or an investment man.
—Zeraoulia Elhadj, University of Tébessa, Algeria

The various means of dealing with uncertainty have been the subject of much recent online discussion, with Chinese complexity studies, particularly those under the heading of grey systems, receiving particular attention. This book presents impressive mathematical theory, with references to applications… . All the topics are treated in a fresh and stimulating way and readers are assured of their effectiveness in practice.
—Alex M. Andrew, Reading University, in Kybernetes, Vol. 39 No.7, 2010

Editorial Reviews

I'm the coach's daughter. He's the team's new rookie-and the man who gave me the hottest night of my life.

After a messy breakup, I wanted one night to forget. No names. No complications. Just heat, chemistry, and a handsome, dark-haired stranger who made my knees weak and my heart race.

But when pre-season training starts, guess who shows up on the ice wearing my father's team's jersey?

Declan Murray. Rookie defenseman for the Denver Aces. My dad's newest project... and the guy who had me pressed against a wall six months ago, whispering things that still make me blush.

Now we're stuck in each other's orbit. He's off-limits for a million reasons-including the fact that my father has expressly forbidden any of his players from touching me. I've always been a good girl, the one who plays by the rules and tries to live up to my parents' expectations.

But Declan? He's not playing fair.

He remembers everything about me. He sends me food when I forget to eat, crochets adorable outfits for my cat, supports my dreams-and gets all growly and possessive in front of my ex.

Worst of all? My dad thinks yoga will help Declan's game... so now I'm stuck giving him private lessons.

The more time we spend together, the harder it is to remember why we shouldn't be doing this.

He wants more. I want to stop wanting him.

But when the guy you're trying not to fall for is already all in?

Staying away might be the biggest penalty of all.

TROPES IN THIS BOOK:
Forbidden romance
Coach's daughter
Forced proximity
Anonymous one-night-stand
Golden retriever with a dominant side
He falls first and hard
Boy obsessed
Praise / dirty talk
Angst and banter

Cross Check Hearts is a contemporary coach's daughter/rookie hockey romance loaded with banter, a touch of angst, and deliciously dirty steam. It can be read as a complete standalone.

From the Publisher