0
In addition, is game theory mentioned at all in the 3/4 Economics course? (my apologies if it is irrelevant to VCE)

Notice: Undefined index: title in /home3/wmroi/public_html/merspi.com.au/qa-theme/NewMerspi/qa-theme.php on line 1251

1 Answer

0
Game theory, has nothing to do with games in the day-to-day sense (Diablo, Call of Duty, etc.).

A game, in game theory, is basically an interaction between two or more players based on some set of rules. That makes a game. A game can be as sterile as "Player 1 has 1 dollar and can choose to give as much money to Player 2 as he or she likes".

The application in economics is to study how rational players will make decisions in certain games. Games are often used as models of real life situations, and help to explain or describe why a particular outcome is reached.

A good example to illustrate this is the classic game theory problem of the Prisoner's dillema, which you can read all about here.

AFAIK, it has no place in the VCE Economics course, but broad and curious questions relevant to the subjects studied in VCE should never really be discouraged, IMO.

Notice: Undefined index: title in /home3/wmroi/public_html/merspi.com.au/qa-theme/NewMerspi/qa-theme.php on line 1251