Monday, May 9, 2016

Game Theory/ Prisoners Dilemma


Nash Equilibrium- a solution concept of a game in which each player is assumed to know the equilibrium strategies of the other players.  No player has anything to gain by changing only their own strategy.

Game Theory- one person's gains result in losses for the other participants. Uses the concepts of conflict and cooperation in behavior relations.

Prisoners Dilemma-shows why rational individuals might not cooperate even if it’s in their best interest to do so. Is an example of a game based off the game theory.

When I played the game I don’t know if I completely understood, this game and its rules are extremely confusing. However I noticed that most of the time, the strategy that worked best and gave the biggest payout was cooperating and it also gives the best payoff to your partner. Competing sometimes gives you less payout and you can get in trouble with the Foul Fate if you do it too much.

Example of game theory:

In history- Cuban Missile Crisis

In government- Negotiating with foreign countries or making war decisions

In economics- Compliance contracts between businesses

In sociology- Making a decision like joining the forces that would affect you family and friends

Related to psychology- Whether to make a decision with your gut or your head

In my everyday life- Deciding whether to watch my favorite show on Netflix or studying     

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