You and your sister break a super expensive lamp. The classic example used to demonstrate the basics is the prisoner's dilemma. Then, by applying the principles of game theory, you can find the optimal strategy. You start by building a mathematical model of a situation (called a game). It's part of a field called applied mathematics which is pretty much exactly what it sounds like. Game Theory is a method of using math to analyze interactions between people. Who are the leading game theorists today? How are they using it?.Why are smart people always talking about it?.Okay, so maybe it's time to stop guessing and figure it out. is it somehow related to the Butterfly effect? Games are involved I think. I figured it had something to do with probability. Not to mention, the movie A Beautiful Mind - written about famous game theorist John Nash - won four Oscars!Ĭlearly people way smarter than me are paying attention, but what is it actually?
As of 2014, eleven game theorists have won the Nobel prize for economics. Politicians, military strategists, and even biologists lean on game theorists to understand how the world works and navigate difficult situations. 'Oh yeah, you're right Game Theory is super important. When people throw it around in conversation I nod my head and avoid specifics.
For the longest time, I've wondered what Game Theory actually is.
