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Title: The use of system dynamics to implement key concepts in game theory
Author: Rafferty, Martin
ISNI:       0000 0004 2718 1059
Awarding Body: London South Bank University
Current Institution: London South Bank University
Date of Award: 2010
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Game theory has been an undoubted success in recent years with several Nobel prizes and dedicated journals reflecting its acclaim and widespread recognition in academic circles. This success has been built on theorising about the ways in which choices and competitive interactions are formulated. Game theorists frequently choose to place a reliance on neoclassical economic concepts of hyper-rationality, perfect information and static equilibria as predicates to general solutions. Concepts which are often implausible in reality and in many cases run counter to both intuition and empirical study. There is little unchallenged evidence for the success of applied game theory. There are many reasons for this lack of success, with the focus revolving around the reliance on redundant neoclassical economic assumptions, the overly abstract nature of much of the literature and the unnecessary use of complex and esoteric mathematical constructs. Methods of addressing the perceived weaknesses of applied game theory have been examined in this work. In particular, various alternative simulation techniques with a practical or applied focus have been investigated; agent based modelling, discrete event and continuous simulation modelling. From this range, the continuous simulation modelling technique system dynamics was chosen as a means of extending game theory into the domain of applied science. The neoclassical assumptions which are at the root of the current failure of applied game theory were investigated in detail. It is concluded that hyper-rationality couldonly be applied as a general assumption when considering entities of low, or no, intellectual sophistication and its applicability generally reduced with increasing intellectual sophistication. A series of models are developed, using the system dynamics paradigm, with the objective of addressing the perceived failings of both the underpinning neoclassical assumptions and impractical implementation of game theory. It is demonstrated and concluded that there are benefits to both game theory and system dynamics from collaboration. System dynamics adds a practical edge to esoteric game theory and game theory can add a significant theoretical insight to system dynamics
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available