Game Theory in the Application of Modern Business Management

Abstract

This article describes the origins of game theory and points out to that if companies want to acquire an invincible position in the fierce competition market; they can not only be strength, but also to focus on strategy. In the modern enterprise management, game theory is playing an irreplaceable important role. By analyzing the ``Prisoner's Dilemma{''} and ``Clever Pig Game{''} and other classic cases of game theory applying in business management, which gives many hits for the bosses, for example, a number of economic issues which were the nature and the mechanisms leading to these difficulties, and thus help them acquire economic activity law, to improve the efficiency of management decision-making.