The Economics of Game Theory :: Game Theory Players Rules Essays

The Economics of Game systemConsider this Could western sandwich management techniques be successfully implemented in the countries of Central and east Europe (CEE) ? Granted, they have to be adapted, modified and cannot be imported in their entirety. But their crux, their inalienable nucleus can this be transported and transplanted in CEE ? Theory provides us with a positive answer. Human agents are the same everyplace and are mostly rational. Practice begs to differ. Basic concepts such as the capital value of time or the moral and legal meaning of billet are non existent. The legal, political and economic environments are all unpredictable. As a result, economic players pull up stakes prefer to maximize their utility immediately (steal from the workplace, for instance) than to retain for longer term (potentially, larger) benefits. Warrants (stock options) convertible to the companys shares constitute a strong workplace incentive in the West (because there is an thought a nd they increase the employees welfare in the long term). Where the future is theory speculation withers. Stock options or a small stake in his firm, will only encourage the employee to blackmail the other shareholders by paralysing the firm, to abhorrence his new position and will be interpreted as immunity, conferred from above, from the consequences of illegitimate activities. The very allocation of options or shares will be interpreted as a sign of weakness, dependence and need, to be exploited. Hierarchy is equated with slavery and employees will rather harm their long term interests than follow instructions or be subjected to criticism never mind how constructive. The employees in CEE regard the incorporate environment as a conflict zone, a zero midpoint game (in which the gains by somewhat equal the losses to others). In the West, the employees accede in the increase in the firms value. The difference amongst these attitudes is irreconcilable. Now, let us consider t his An entrepreneur is a person who is capable at identifying the unsatisfied needs of a market, at mobilizing and organizing the resources required to see those needs and at defining a long-term strategy of using and marketing. As the enterprise grows, two processes combine to denude the entrepreneur of some of his initial functions. The firm has ever growing needs for capital financial, human, assets and so on. Additionally, the company begins (or should begin) to interface and interact with older, better established firms.