There are several topics in political science to which the application of game theory is prima facie appealing. They are voting, the study of power, diplomacy, negotiation and bargaining behavior, coalition formation among political groups and logrolling.
This brief survey is by no means intended to be comprehensive but is intended to serve as a guide to some of the more immediate applications of game theory to political science.
There are several topics in political science to which the application of game theory is prima facie appealing. They are voting, the study of power, diplomacy, negotiation and bargaining behavior, coalition formation among political groups and logrolling.
This brief survey is by no means intended to be comprehensive but is intended to serve as a guide to some of the more immediate applications of game theory to political science.
In a well controlled monetary economy with no uncertainty and a money market, money is not merely a veil, it is a cocoon. There are no idle cash balances in a competitive monetary economy with a money market without uncertainty. The presence of uncertainty calls for the holding of cash.
In a trading economy with perfect foresight, without taxes, but with traders having positive time discounts the rate of interest on paper money is positive.
With uncertainty, fiat money is a form of insurance or generalized futures contract.
The mathematical differences among static general equilibrium theory, a theory of money in a static general equilibrium context with perfect foresight and an evolutionary system are essentially the differences among maximization subject to equalities; convex programming and dynamic programming.
They are needed for current transactions or are loaned.
In a well controlled monetary economy with no uncertainty and a money market, money is not merely a veil, it is a cocoon. There are no idle cash balances in a competitive monetary economy with a money market without uncertainty. The presence of uncertainty calls for the holding of cash.
In a trading economy with perfect foresight, without taxes, but with traders having positive time discounts the rate of interest on paper money is positive.
With uncertainty, fiat money is a form of insurance or generalized futures contract.
The mathematical differences among static general equilibrium theory, a theory of money in a static general equilibrium context with perfect foresight and an evolutionary system are essentially the differences among maximization subject to equalities; convex programming and dynamic programming.
They are needed for current transactions or are loaned.