All posts tagged: game theory

Game theory lessons in life

In yesterday’s class of game theory, I learnt one of life’s most important lessons, proven mathematically. It is a generalization of the Shooting Game to life and business, and I’ll try to keep it as non-technical as possible.  If you’re not already familiar with the term, game theory is a subset of economics that assesses the behavior of people in situations where the result (outcome) of their actions (strategies) is influenced by the actions of other people (players). The most widely known example of a game is the Prisoner’s Dilemma. The Shooting Game is a zero sum game, implying that co-ordination is never possible. When one player wins, the other always loses. The game takes place as follows: “Each player has a pistol loaded with only one bullet. They stand 10 steps apart and walk towards each other, at the same pace, one step at a time. After each step, they can choose to fire their one bullet at the other player. The probability of an accurate shot increases with each step, as the players …