A Method of Mathematical Dealing with Non-Quantifiable Payoffs II

The Significance and Benefits of a Generalized Normal-Form Game

Abstract

In a previous study, the author defined a broad payoff and generalized normal-form game, and discussed the usefulness of these definitions using general topology, a branch of mathematics. Furthermore, this was shown to be useful as a new definition of a normal-form game in view of actual economic and business activities. As a result, a mathematical method that deals with non-quantifiable information about economic and business activities was proposed, and it has been suggested that information that could only be determined empirically can be recognized as having a clear basis with a mathematical background. However, although the mathematical method was proposed, it does not mention its significance in specific business situations. The current study therefore discusses the significance and benefits of the above results, focusing on re- recognizing the Japanese management concept and the possibility of expanding the subject using game theory.