Game theory in solving conflicts on local government level

Abstract

Game theory is often used while making decisions in situations of conflicted interests. This research studies practical application of game theory with emphasis on applying linear programming, i.e. simplex algorithm while solving problems in game theory domain. Different cases of game theory application in various scientific disciplines went through theoretical analysis. After the analysis was conducted, this paper presented a practical example of solving a situation of conflict on local government level and the efficiency of game theory while making decision.