First, Game Theory and its close relationship with economy are intro-duced briefly in this thesis, the main deducing method used in this thesis and the backward induction in the two-stage observable dynamic game are discussed, the expression of wage structure in the two-person competition is presented, the existence of Nash equilibrium of the model developed is proved by Nash equilibrium theory and Fan-Glicksberg theory. The situation, that N persons participate in the competition, is discussed by discussing how to set the reasonable structure of wage and how to act next. Finally, how to encour-age workers to work hard to bring higher profits to the company is discussed when the company is faced with the intense competition with others. |