Game Theory (Essay Sample)

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Game Theory
Game theory is the official study of conflict and corporation that entails a study on strategic decision-making. The concepts of game theory usually relate to whether the actions undertaken of several agents are mutually dependent. The agents in game theory may represent agents, people, groups, corporations, or a combination of any of the four entities. In addition, the idea of game theory offers a language to devise, arrange, analyze, and comprehend strategic circumstances. Since 1990s, the game theory design of applications became high profile (Miceli). In this era, prominent game theorists participated in the design of auctions’ for allocating rights to the use of bands in the mobile telecommunications industry. The auctions were meant to designed and conducted to allocate the resources more efficiently than traditional administrative practices. On the other hand, whistle blowing is the concept of an individual exposing a person, authority, or corporations about an alleged dishonesty or illegal operations and misconduct whether in a government or private sector in business. The said illegal or dishonest operations may take among other forms fraud, infringement of a law, corruption, direct threat to citizens welfare, safety contravention and so on. A whistleblower is thus the individual who volunteers the information on such actions to the relevant authorities.
The concept of whistle blowing legislation can be positioned in the structure of Game theory with respect to the three basic characteristics of whistle blowing. A constructed game theory model addresses three fundamental features of whistle blowing that include principled decision-making, the duality of joint responsibility among groups in leading companies and the role conflict between a person and corporations values. The study of organizational culture necessitates an accent on performance within a large group of players (Miceli). In every period, a member of a given group comes across one encounter with an indiscriminately selected group. Box 1 specifies the result of any such pair wise matching. In an official viewpoint, strategies refer to player types; the units of selection that describe the firm’s behavior. In addition, from an evolutionary viewpoint, the real contest is a pair wise competition between diverse strategies, rather than individual players, that is Box 1 is not interpreted as a strategic form game. Moreover, roles refer to the row (monitor) or column (worker) position. Either an employee with the monitor’s role can choose to monitor (M) or not (N). On the other hand, the worker role identifies an employee who can violate (V) an ethical code or adhere to it (A). At this point, there is an assumption that the whistle blower is not a violator thus whistle blowing is not associated with derogatory stereotypes, for instance, plea-bargaining and cartel defection for leniency in sentencing and so on.
Without a whistle blower, the regular government faces several challenges in proving the presence of a price fix by organizations. This is because such activities take many forms namely bid rigging, price inflation and so on. The collusions by companies to fix prices takes place in order to take advantage of the markets and boost profits. A regular government does not possess adequate expertise to prove price fixing allegations because of the dynamics involved in the activities (Connor 56). A well-executed price fixing venture by organizations is undetectable since the long-run equilibrium indicates a similar movement that takes place in a free market. In addition, an increasing cost industry portrays increase in input demand by businesses in a market that leads to an increase in input prices. Consequently, the average costs of production also increase. In such a case, a price fix that entails increased prices is hard to detect because of the stated dynamism in the market. In addition, the government is required to investigate the price fixing allegations with considerations such as competitive pricing in the markets. In this situation, it becomes difficult to detect the uncompetitive prices set above the competition prices that lead to large profits. Therefore, there is a need to engage qualified economists and analysts in the price fixing investigations in the markets (Connor 56).
In the perception of some individuals, collaborative hustle blowers are equally unethical. This is because, such people are considered unbalanced and disloyal to organizational ethics and code of conduct. According to the article, Virgin Atlantic was involved in a deal with the British Airways to fix their prices and benefit from their control in the market to make higher profits. The two airline companies further agreed that they would cite oil prices as the main reason for increased flight ticket prices. However, the Virgin Atlantic C.E.O disclosed the conspiracy to the Office of Fair Trading (OFT) with an aim of receiving immunity from punishment. Immunity for the whistle blower who collaborated in a business conspiracy is not a necessary accessory to effective policy. This is because the whistle blowers are enemies of business due to their initial agreement to enter into fraudulent agreements with other organizations. Therefore, a whistle blower involved in any conspiracy such as Virgin Atlantic, should a...