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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