Ted Talk: Game Theory and Brain Activity
Behavioral economist Colin Camerer studies connection between game theory and brain circuitry as people make decisions and bargain. His studies have shown that humans do not partake in extensive strategic thinking and tend to stop after one or two steps. This was proven during an experiment where people tried to guess what 2/3rds of the average number would be. The location and movement of brain activity is also demonstrated to show the true complexity of decision-making. Chimpanzees were actually proven to be better competitors than humans during an experiment that involved an attack-defense game. The percentage of times that each chimp chose left or right surprisingly matched the Nash Equilibrium that was predicted using the game theory. This demonstrates how well these creatures reacted to changes in payoff and changes in the game. Scientist believe that this species has possibly preserved a brain activity that we have lost through evolution that allows them to think more strategically.
References to game theory are all around us in our every day lives. For example, it is evident that married couples must make decisions strategically when debating things like whether to budge or stand their ground in an argument. This relationship is compared to playing poker as many game theory dilemmas arise on a daily basis.
This article has many ties to the game theory chapter of Networks, but it goes even further to understand the science behind decision-making. The chimpanzee experiments showed how Nash Equilibriums is applied and achieved, even in other intelligent species. Taking fMRI and EEG scans of brains during these situations shows what agreement and disagreement look like. Examining the brain interaction between two people can help to predict whether or not a deal will be made.