ABSTRACT
Game theory provides a useful and informative way of improving decisions by including the anticipated actions of others during decision making process. Game theory suggests that labeling genetically modified organism (GMOs) allow consumers to make informed decisions about food purchases. This game formalizes a hypothetical situation similar to issues that arise in the food and agriculture industry when a new product is made available. In the US, agricultural policy is based on Congressional 'Farm Bills' that are typically reviewed and updated once every four to six years. Since 1950, farm population in the US has diminished quite rapidly. Because of this, political power of US farmers has diminished demonstrably. Prior to World War II, agricultural production was 'organic' since few thought it important to distinguish between organic and inorganic production methods. The price war game is an example of a prisoner's dilemma with important implications: cooperative solutions that maximize group welfare can be difficult to achieve in one-time games.
