Application of Game Theory in Evaluation of Stock Investment

Nowadays the enterprises are in an intensive competition and can not merely rely on traditional methods of decision making over certainty, risk and uncertainty situation in facing domestic or international rivals. Hence recognizing the new techniques of decision making against the competitors in the contradictory situations seems to be a vital necessity for each enterprise. These techniques assist the investors to make an economical evaluation of the investment alternatives and help them to manage and mitigate the risk. Investment in the developing countries is competitive and is endangered by a plenty of unknown and unexpected variables which lead the investors towards investigating and applying the new methods like "Games Theory". This article describes how to use the Games Theory's Methods to make the proper and timely decisions against the rivals and how to evaluate the investment alternatives economically. It also tries to show how the Games Theory maintains the interests of different investors in the alternatives and helps them to reach to an equilibrium point of consent. Study result showed that Game Theory have applicable in Investment evaluation.