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To What Extent Does Game Theory Influence Profit Maximisation in Organisations
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Abstract
Incentives of employees are a crucial factor for profit maximisation in organisations since they directly affect the productivity of products to be sold into the market. In order to maintain a positive working status, organisations must think of efficient methods such as reward systems, to enhance the relationship between all workers. This paper will investigate the importance of an efficient organisational working group, and the application of different reward systems to maintain high-level incentives through an analysis of game theory models. The prisoner’s dilemma game and the boxed pig game will be introduced to analyse the advantages and disadvantages of reward systems, as well as the elimination of the free-rider phenomenon.
Keywords
social capital, game theory, profit
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Cite this article
Qu,S. (2023). To What Extent Does Game Theory Influence Profit Maximisation in Organisations. Advances in Economics, Management and Political Sciences,14,18-22.
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Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies
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