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Why Is Game Theory Useful in Predicting Firm Behavior

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Why is game theory useful in predicting firm behavior?


Definitions:

De Facto

A term used to describe practices that exist in reality, even though they are not officially recognized by laws.

Promissory Notes

Written, legally binding agreements in which one party promises to pay another a specified sum of money at a future date or on demand.

Debentures

A type of long-term debt instrument used by companies and governments to borrow money, not secured by physical assets.

Warrants

Legal documents that grant the holder the right to buy or sell a particular asset at a specific price before a certain date.

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