![]() ![]() ![]() Each friend feels that eating a regular burger is worth $5 while eating a deluxe burger is worth $6. There are two items on the menu: (i) a regular burger that costs $4 and (ii) a deluxe burger that costs $8. Example: Eating Out with FriendsĮight friends have decided to go out together for lunch at a burger restaurant. Sometimes, as in the next example, the predictions that game theory makes can be quite unexpected. Mathematics is useful in game theory as a tool to analyze players’ motivations and to predict outcomes. Just as physics describes how planets revolve around the sun, game theory seeks to describe how people make decisions in games. ![]() Game theory is used to study how people are likely to behave in strategic situations, with applications in economics, political science, business strategy, law, entrepreneurship, and military science, to name just a few. You’re playing games! Knowing about game theory can help you improve your experience in those situations-not just to “win,” but to improve your relationships and have a happier life. From the bathroom to the breakfast table, in the classroom and on the playground, you make choices that impact others as well as yourself. How quickly you got out of bed impacted your parents-and how early they woke you up impacted you-so that was a game! Think about what happened next, throughout the rest of the day. Do not believe me? Think back to the very beginning of your day, when you woke up. At home, at school, everywhere we go, and just about everything we do, we are playing games. Just about everything we do in life is a game in the game-theory sense. Definition: GameĪ situation is a “game” whenever (i) more than one person is making a decision and (ii) people’s decisions impact one another. But in the branch of mathematics known as “game theory,” we speak of games in a much broader sense. When people speak of “games,” they are usually talking about amusements, like checkers and Monopoly, or sports, like football or basketball. (John Donne, seventeenth-century English poet) So, truly, “nice guys finish first.” Introduction: Games, Games Everywhere Game theory shows that people who are kind and trustworthy have a strategic advantage, as they can “change the game” to escape the PD and make everyone better off, including themselves. In this article, we use ideas from the branch of mathematics known as “game theory” to study a situation known as the “Prisoners’ Dilemma (PD),” which sheds light on why people often fail to work well together. Leo Durocher, a famous baseball player from the 1930s, once said that “Nice guys finish last.” That may be true in baseball, but it is not true in life more generally. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |