Model and Analysis the Game Related To Economics Using Pure Strategy and Mixed Strategy: Evidence from Indonesia

Abstract

The purpose of this paper is to construct model and analysis the game related to economics using pure strategy and mixed strategy. In this game, more than one people are involved and it proceeds as their preferences, every single strategic actions and the information are available to the other players. Each of these actions influence the outcome. Game theory deals with any problem in which each player strategy depends on what the other players do. This research uses the data from the conflict among the Central Government, Local Government, and WALHI (Indonesian environment forum) of Indonesia’s haze pollution in Riau region. Analyzing preferences of each players using pure-mixed strategy, each player’s preferences equilibrium met at central government delays to take any action regarding the haze pollution; local government modifies local regulation that can help reduce pollution; and WALHI does not protest because local government already wants to support them by modifying local regulation.