What is a global game?

Global game is a situation where workers work on a large scale and decide each other without knowing the full effects of these actions in advance. The global game is a subset of game theory, and therefore exists mostly as statistical models, social tendencies and predictive algorithms. Generally, global game theory is used to predict economic crisis such as banking runs or bubbles. Together with predictive models, these theories contain methods for introducing these situations back to a state of adequate stability. These games present a situation where one player's action affects the success or failure of one or more other players. Actions and their consequences are mapped statistically, so the complete effect of one action can be monitored through its completion. The use of these models allows scientists to find the real cost of action, and those that seem harmless, through a large system.

Although there is a hugeA number of types of games, most are defined by the amount of knowledge that different participants have. Global game is an incomplete knowledge format. In this case, the information known by different participants does not apply to other players. The participant may know the complete consequences of his own actions, but he does not know the consequences of other players. In fact, they may not be aware of the possibility of other players or even about their existence.

The use of global games theory is usually limited to financial crises. Models carried out by these experiments can predict the likelihood that a company, industry or even a country that has a sudden decline in production or financial accident. By using these models, investors can help prevent or earn on instability before they happen. This will protect investments or let the manipulators earn disruption.

A common example of global game theory is to predict banking runs. Bank running is when a group of people fears the abilities of the bank to repay the money. WhenThey try to pull these people out of the bank, generating fear among other members and starting to withdraw their money. This panic spreads until the bank attacks the selection weight. It is important to note that the bank does not have to have problems in advance - this has been caused by the actions of the panic of people that caused the accident.