22.22 ndian onom
of aircrafts, consumption of fuel other than and Morgenstern an economist and this book was
industrial fuel, use of telephone, scholarship to the based on the former’s prior research published in
children of the employees. The tax was abolished 1928 on the Theory of Parlour Games (in German).
from 2009–10. The theory has found significant applications
in many areas outside economics as usually
gAllup poll construed, including formulations of nuclear
strategies, ethics, political science, and evolutionary
A method of survey in which a representative theory.
sampling of public opinion or public awareness
concerning a certain subject/issue is done and on gDrs
this basis a conclusion is drawn.
The credit of developing this research While ADRs are denominated in dollars and
methodology goes to George H. Gallup (1901–84), traded on US National Stock Exchanges, GDRs
a US journalist and statistician who in 1935 did can be denominated either in dollars or Euros
and are commonly listed on European Stock
set up the American Institute of Public Opinion.
Exchanges. Investors can cash in on the difference
Through his efforts the method developed between
in price between local and foreign markets. Some
the period 1935–40. In the coming times, the poll
time back ADRs and GDRs were fungible one way
technique was immensely used by business houses
i.e. foreign investors could convert their ADRs/
for their market research and the psephologists for GDRs into underlying shares and sell them in the
election forecasting, around the world. local market. However, they were not permitted
to reconvert shares bought on the local exchange
gAme theory into ADRs/GDRs. In 2002, two-way fungibility
was permitted. Under these rules reissuance of
The analysis of situations involving two or
depositary receipts is permitted to the extent to
more interacting decision makers (that may be
which they have been redeemed into underlying
individuals, competing firms, countries, etc.) who
shares and sold in the domestic market.
have conflicting objectives. It is a technique which
uses logical deduction to explore the consequences
of various strategies that might be adopted by
game players having competing interests. The good for which the demand increases as its price
Game theory is a branch of Applied increases, rather than falls (opposite to the general
Mathematics that studies strategic interactions theory of demand)—named after Robert Giffen
between agents–where the agents try maximising (1837–1910). It applies to the large proportion
their pay off. It gives formal modelling approach of the goods belonging to the household budget
to social situations in which decision makers (as flour, rice, pulses, salt, onion, potato, etc. in
interact with other agents. The theory generalises India)—an increase in their prices produces a
maximisation approaches developed to analyse large negative income effect completely overcoming
the normal substitution effect with, people buying
markets such as supply and demand model.
more of the goods.
The field dates back from the 1944 classic
Theory of Games and Economic Behaviour by John
von Neumann and Oskar Morgentern (Princeton
University Press, N. Jersy, 1944 & 2004; 60th An inequality indicator in an economy. The
Anniversary Ed.). Neumann was a mathematician coefficient varies from ‘zero’ to ‘one’. A ‘zero’