L2-MHG #03 What is game theory?

In a game the players try to win. How does this work? What does this mean?

In game theory there are three things:
1. There are the players
2. There are the moves
3. There are the payoffs.

Each player in the game tries to make the better moves that will give him or her much better payoffs. Each player knows that the other players–the competitors–are also trying to win.

What now? What’s my next move?

The interesting part of game theory has to do with the ongoing tactical interaction–when each player tries to figure out what the competitor’s strategy is before making their next move.

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To contrast, take golf and bowling. Although there are competitors in these games, they have little effect on your game and you have little effect on theirs. When formulating your next golf move you are not thinking about your competitor’s next move but you are concentrating on how to improve your own score. So games like golf and bowling are of little interest to games theorists.

Game theory is for those games when your move effects the move of your opponent and when your opponent’s move impacts on how you will choose you next move. This is where game theory comes into play.

The bottom line in gameworld is that all the players always act in their own self-enterest and so everyone lies whenever lying has an impact and can serve their strategic interests.

DFQ #03:
Post below two examples of games where there are players, moves and payoffs.

Give one example (like golf) where game theory is not useful, and give one example (like dating) where game theory is very useful:

8 thoughts on “L2-MHG #03 What is game theory?

  1. Game theory would not apply in Archery competition.

    Game Theory would be very useful in the board game of Monopoly.

  2. Player moves and payoffs exist in Cricket & Doubles Tennis.

    Game theory would Not useful in Target shooting yet useful in football.

  3. Game theory is not useful:Being an author/writer (solo only?)
    Game theory is useful: Bringing up a child

  4. Post two examples of games where there are players, moves and payoffs: soccer and chess

    Give one example (like golf) where game theory is not useful: lawn bowls

    Give one example (like dating) where game theory is very useful: debating

  5. Players, Moves, and Payoffs:
    Poker (casino card game)
    Entrepreneurship

    Game Theory is not useful in education.
    Game Theory is useful in marriage.

  6. 2 game examples: Baseball and Backgammon

    1 not usefull: Playing an instrument in an orchestra

    1 example of useful: Parenting

  7. Basketball, yachting

    An example of when game theory is not useful is gymnastics
    An example of when game theory is useful is chess

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