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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
A Household Model Of Careers And Education Investment, Jessica F. Young
A Household Model Of Careers And Education Investment, Jessica F. Young
Undergraduate Economic Review
This paper develops a two-stage non-cooperative household game, in which parents make career decisions and an investment into their child’s human capital. The model is solved for Nash equilibrium outcomes and extended for a cooperative solution. In non-cooperative pure strategies, both parents choosing to work is a Nash equilibrium, though there are alternative outcomes when the conditions underlying the career decision are varied. The investment behaviour of agents is analysed. We find that choices are critically affected by the magnitude of the cost (and reflected quality) of a high education investment relative to a low investment, and the intrinsic value …
Are Art Students Nicer Than Economics Students? A Discussion Of How Economic Game Theory Predicts That Art And Economics Students Differ In Terms Of Reciprocity, Abigail Claiborne
Are Art Students Nicer Than Economics Students? A Discussion Of How Economic Game Theory Predicts That Art And Economics Students Differ In Terms Of Reciprocity, Abigail Claiborne
University Avenue Undergraduate Journal of Economics
Neoclassical economic game theory predicts that a player’s goal is to maximize her income regardless of others. In playing the Ultimatum Game this means that Allocators will allocate the minimum amount and the Responders will accept that amount because something is better than nothing. Economics students behave differently because they self-select into that field already thinking as economists do and while studying economics they adapt their behaviors to economic theory. Therefore it is natural to assume that Economics students will act according to theory and that non-economics students will not. The Smith College study between Art students and Economics students …
Fun, Games & Economics: An Appraisal Of Game Theory In Economics, Jamus Jerome Lim
Fun, Games & Economics: An Appraisal Of Game Theory In Economics, Jamus Jerome Lim
University Avenue Undergraduate Journal of Economics
Game theory has had a profound influence on many fields of the social sciences since its rise to prominence more than fifty years ago. This paper provides an overview of the main concepts in game theory and studies four main areas of its application in economic problems – oligopolistic competition, externalities & public goods, market equilibrium and general equilibrium. The conclusion is that game theory has found a natural place in economics and will continue to contribute to it for many years to come.