Game Theory in the field of Computer Science
Learning about game theory in class made me very curious about the way that it can be applied in real world situations. Although we went over very basic examples such as the prisoner’s dilemma, I wondered if game theory could be used in more commonplace situations. I have always associated game theory with economics and the finance system, but was surprised to learn through this article that it is very alive in the world of computer science and electrical engineering. The concept of Nash equilibrium and being able to find that balance where both players have no motive to switch strategies is very useful when it comes to engineering and controlling power systems. Power production and consumption relies heavily on engineers being able to predict the demand from consumers as well as the choices that consumers may make, and being able to have some sort of insight into what the outcome may be allows engineers to shape the electrical and power systems to fit consumers’ needs.
Another way that game theory can be used in systems is to predict the outcome of changes that power providers make. Different functions, such as the light switch, could greatly affect the way that consumers respond and use power, as well as the amount of information that a company discloses to its consumers. If a company tells its consumers real time electricity prices, it may change the way that the consumers use that service, which in turn may affect other companies in the same market. This leads into the very interesting topic of networks, and the way that certain people are connected to others can affect many other people in turn. Engineers have developed tools that would analyze the main network structure of a certain population. Because our society is very connected, especially due to technology, people’s views and beliefs on certain issues can spread throughout the networks of people and greatly affect society. It was very interesting to me that there are so many ways that game theory is alive and contributing to our modern day society.
Link: http://www.technologyreview.com/article/515481/gaming-the-system/