Physical Sciences and Mathematics Commons^™

The Negotiator's Role In A Buyer-Seller Game, Joseph Gaudy

Graduate Theses and Capstone Projects (excluding DNP)

In game theory, buyer-seller games rarely utilize a negotiating third party. Any negotiations are typically conducted by the buyer and seller. This study, motivated by the real estate market, uses sequentially and simultaneously played game models to explore the influence a self-interested, negotiating, third party has on player payoffs. For the sequential model, a game tree is utilized to demonstrate player actions, preferences, and outcomes. The weak sequential equilibrium is calculated using Gambit[1] and shows optimality in player payoffs to exist when the seller’s and realtor’s strategies align according to the current market. For the simultaneous model, expected payoff functions …