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

The Economics of Game TheoryConsider this Could Western precaution techniques be successfully implemented in the countries of Central and Eastern europium (CEE) ? Granted, they have to be adapted, modified and cannot be imported in their entirety. alone their crux, their inalienable nucleus can this be transported and transplanted in CEE ? Theory provides us with a positive answer. Human agents argon the same e genuinelywhere and be mostly rational. Practice begs to differ. Basic concepts such as the money mensurate of time or the moral and legal meaning of property are non existent. The legal, political and frugal environss are all unpredictable. As a result, economic players impart prefer to maximize their utility immediately (steal from the workplace, for instance) than to wait for all-night term (potentially, larger) benefits. Warrants (stock options) convertible to the fraternitys shares constitute a blotto workplace incentive in the West (because there is an horiz on and they gain the employees welfare in the long term). Where the future is dead reckoning 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 abuse his novel position and will be interpreted as immunity, conferred from above, from the consequences of illegal 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 instead harm their long term interests than follow instructions or be subjected to criticism never mind how constructive. The employees in CEE regard the corporate environment as a conflict zone, a zero sum granulose (in which the gains by some equal the losses to others). In the West, the employees participate in the increase in the firms value. The difference between these attitudes is irreconcilable. Now, let us consider this An entrepreneur is a person who is gifted at identifying the unsatisfied needs of a market, at mobilizing and organizing the resources required to satisfy those needs and at defining a long-term strategy of development and marketing. As the enterprise grows, two processes combine to denude the entrepreneur of some of his sign 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.