Game, Guts, and Rock Paper Scissors

Game theory in life is about developing a solid strategy based on logic and economics.  

In real life, game theory is the study of strategic decision-making—or how best to choose when there are conflicting interests. It’s based on the simple idea that we can model any strategic situation as though it were a game. 

For example, think about a tennis match. The players have different goals: one wants to win the game, while the other just wants to avoid losing. Each player has different strengths and weaknesses, which they must consider when making their decisions. Game theory can help us understand how each player will act in this situation. By understanding the rules of the game, we can figure out what the best move is for each player.   

We can use game theory to make strategic decisions in all sorts of situations, from business to politics to relationships. Game theory is used by businesses all the time. Companies use it to figure out how best to price their products, how to design advertising campaigns, and how to negotiate deals with other businesses.   

Game theory can also be used in personal relationships. For example, you might use game theory to figure out how best to ask your boss for a raise or when it's time to move on from a stagnant relationship or failing business venture. The key to success in game theory is to have a good understanding of human behavior. We must be able to predict how others will react to our actions to make the best possible decisions. Only then can we develop a winning strategy.  

There are a few important concepts in game theory that can help you make better decisions in any situation. The first is the concept of Nash equilibrium. Nash equilibrium is when both players in a game are making the best possible move given the other player’s strategy. In other words, neither player has anything to gain by changing their strategy.   

Nash equilibrium is important because it helps us find the best possible outcome in a game. If both players are in Nash equilibrium, then we know that neither player can do any better by changing their strategy. This is the best possible outcome for both players.  

The second important concept in game theory is the Prisoner’s Dilemma. The Prisoner’s Dilemma is a game that illustrates how two people can make suboptimal decisions when they are trying to maximize their payoff. In the game, two prisoners have been captured by the police. The police interrogate each prisoner separately and offer them the following deal:    

If Prisoner A confesses and Prisoner B does not, then Prisoner A will be set free, and Prisoner B will go to jail for 10 years.  

If both prisoners confess, then each will go to jail for 5 years.  

If neither prisoner confesses, then each will only go to jail for 1 year.  

The key to this game is that the prisoners cannot communicate with each other. They can only make their own decisions. Given these options, what would you do?  

The answer might seem obvious: you should confess because you don’t want to go to jail for 10 years. But if both prisoners confess, then they will both go to jail for 5 years. So, the best possible outcome for both prisoners is if neither of them confesses. But, because they cannot communicate with each other, they are both likely to make the suboptimal decision and confess. This is an example of how game theory can help us understand human behavior and make better decisions.  

The third important concept in game theory is the idea of a dominant strategy. A dominant strategy is a strategy that is the best possible move no matter what the other player does. For example, in the game of rock-paper-scissors, the best possible move is to always play rock. This is because rock beats paper, paper beats scissors, and scissors beat rock. No matter what the other player does, you will always win if you play rock.  

Dominant strategies are important because they help us find the best possible move in a game. If both players have a dominant strategy, then we know that the game will always end in a tie. But if one player has a dominant strategy and the other does not, then the player with the dominant strategy will always win.  

These are just a few of the important concepts in game theory. By understanding these concepts, you can make better decisions in any situation. So, next time you’re faced with a difficult decision, remember to think about game theory.  

Having a good understanding of human behavior is not everybody's forte. We can get a glimpse of how other people think by learning game theory. But human behavior is not always predictable. There are many times when we need to decide without knowing what the other person is thinking. In these cases, it is best to trust our gut instinct.  

Gut instinct is that feeling we get in our stomach that tells us what to do. It is a primal and instinctual response to a situation. Our brain is hardwired to make split-second decisions based on this feeling.  

Gut instinct is important because it can help us make decisions quickly. In a fast-paced world, we don't always have time to think things through we can't always apply the game theory. Sometimes, we just need to go with our gut.  

Of course, gut instinct is not always correct. We can't always trust our gut to make the right decision. But if we listen to it enough, we might be able to develop a sixth sense of what is best for us. So next time you're faced with a difficult decision, don't forget to listen to your gut. It just might help you find the best possible outcome.  

 So, there we have two options for the best outcome in any game, either we have a dominant strategy, or we go with our gut instinct. But what if we don't have either of those? what do we do then?  

If we don't have a dominant strategy or the ability to go with our gut instinct, then we need to think through the possible outcomes of our decision. Of course, this isn't always the case. There are many situations where there is no clear best decision. In these cases, we need to weigh the pros and cons of each choice and choose the one that is most helpful to us.  

Weighing the pros and cons of each choice can help us decide when there is no clear best choice. But sometimes, even this isn't enough. In these situations, we might need to ask for help from someone who has more experience than us. Asking for help is not always easy. We might feel like we are admitting that we can't do something on our own. But sometimes, asking for help is the best decision we can make, asking for help might be the best thing we can do. By asking for help, we can get guidance from someone who knows more than us. So, next time you're stuck in a difficult decision, remember to ask for help. 

But Applying game theory in a practical sense requires an actual game board or some other sort of visual representation. A game board helps us to map out the possible moves we can make, and the possible outcomes of those moves. It also helps us to see what the other person is doing, and how that affects our strategy. There are many diverse types of game boards, but the most important thing is that it helps us to see the big picture. The physical board also allows us to play out the game in our head, which can help us to understand it better. the easiest game board is one that we can make ourselves. 

When making a game board, and this is where the pen-to-paper application comes into play, we first need to identify the players in the game. For example, if we are playing chess, then the players are white and black. If we are playing Go, then the players are red and white. Once we know who the players are, we can start to map out the possible moves they can make. For example, in chess, the black player can move their pawns forward, or they can capture the white player's pieces. In Go, the red player can place their stones on any space on the board. 

Once we know the possible moves each player can make, we need to map out the possible outcomes of those moves. For example, in chess, if the black player captures the white player's queen, then the black player wins. In Go, if the red player surrounds the white player's stones, then the red player wins. 

Once we know the possible outcomes of each move, we can start to think about what the best move is for each player. For example, in chess, the best move for the black player might be to capture the white player's queen. In Go, the best move for the red player might be to surround the white player's stones. 

The important thing to remember about game theory is that it is always changing. The strategies we use today might not work tomorrow. This is because people are always learning and adapting, just like we are.  

So, we need to be flexible in our thinking, and always be willing to learn new things.  

Game theory is a useful tool that can help us to understand human behavior.  

It can also help us to make better decisions in any situation.