Traditional Culture Encyclopedia - Traditional culture - What does the game between people mean?
What does the game between people mean?
Under certain conditions and following certain rules, one or several people or teams with absolute rational thinking choose and implement the behaviors or strategies they are allowed to choose, and get corresponding results or benefits from them. Sometimes it is also used as a verb, especially the process of implementing a selected behavior or strategy.
From the research paradigm of game theory, it can be divided into traditional game theory and evolutionary game theory; From the specific application of games, it can be divided into static games and dynamic games. Static game means that in the game, two players choose at the same time or two people don't choose at the same time, but the latter player doesn't know what specific action the former player takes.
A complete game should include five aspects:
First, the participants in the game, that is, individuals and organizations who make independent decisions and bear the consequences independently in the game process; The second is game information, that is, the information that players have to help them choose strategies.
Third, the set of all behaviors or strategies that players can choose; Fourth, the order of the game, that is, the order in which the game participants choose strategies; Fifth, the interests of players, that is, the gains and losses of each player after making a decision.
Pollution game:
If there is pollution in the market economy, but the government does not control the environment, in order to maximize profits, enterprises would rather sacrifice the environment and never take the initiative to increase investment in environmental protection equipment. According to the invisible hand principle, all enterprises will start from self-interest and adopt the strategy of ignoring the environment, thus entering the "Nash equilibrium" state.
If an enterprise invests in pollution control for altruistic purposes, while other enterprises still ignore environmental pollution, then the production cost of this enterprise will increase, the price will increase, its products will not be competitive, and even the enterprise will go bankrupt. This is an example of the failure of the "effective and complete competition mechanism of the invisible hand"
Until the mid-1990s, the blind development of Chinese township enterprises caused serious pollution. Only when the government strengthens pollution control will enterprises adopt a low-pollution strategy combination. In this case, enterprises will get the same profits as high pollution, but the environment will be better.
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