Game Theory: What’s your choice going to be ?
The concepts I studied in Networks class brought back memories of my childhood. Some of the most remembered experiences for most people include the way teachers used to give us two choices during the process of determining which student was at blame, how parents handle their kids when they quarrel, and even the ways we used to play some of our childhood games like rock, paper, scissors. All of these instances from my early life illustrate the idea of game theory. Game Theory is a concept that describes how the decisions made by one player can have an impact on another player’s payoff and vice versa.
For illustration, suppose two best friends are offered a position of being a TA for Networks course at Cornell. However, they must pass one more behavioral evaluation before being employed; they have been informed that only one of them will be chosen for the position and that themself can select who will be hired. They are both unaware that the professor offered them this choice as a test to assess who is less egotistical.
From the professor’s perspective:
If Student A and Student B both pick each other to get employed over themselves, the professor will be compelled to congratulate both of the students. However, if both Student A and Student B favor themselves rather than each other, the professor shall reject both of the students’ offers. Otherwise, if Student A chooses themself to get hired but Student B chooses Student A to get hired, then Student A loses their chance of getting the job and Student B earns the job and vice versa. Therefore in this case, the best response for both of the students is to not be selfish; to give up their jobs for one another so that they both technically will earn the position.
Particularly, the prisoner’s dilemma theory meshes well with the examples above. Prisoner’s dilemma is a game technique in which both sides decide to act in a way that will maximize the most beneficial results. In this case, the dominant strategy for both students is picking one another because it is the most advantageous option they have. I have noticed these methods of a game theory several times in popular movies before as well as applied it in my daily life choices and connections. Game theory is an incredible concept for making decisions and I am glad to get to learn about it more in Networks.
Sources:
https://www.investopedia.com/terms/g/gametheory.asp
https://corporatefinanceinstitute.com/resources/knowledge/other/prisoners-dilemma/