Interdependence Rational Behavior In Game Theory example essay topic
407 words
Game Theory (Strategic Thinking in Everyday Life) Have you ever been faced with having to live with a decision you made knowing that had you taken the time to analyze the outcomes you may have made a more intelligible choice? Most likely the answer to that question was 'yes'. Afterall that is more - or - less is what life is about, a series of choices and the outcomes we are faced to live with as a result of our decisions. Well your probably asking yourself 'What does this obvious statement have to do with me?'.
I'll begin by telling you it has everything to do with you and everything to do with any situation you may confront from this day forward. After - all life is but a game and it is our goal to win. The fundamentals of the 'Game Theory will provide us with the basic tools we need to succeed at this game. What is Game Theory?
Simply put, it is the study of rational behavior in situations requiring interdependence. Wow! That seems like a pretty heavy statement. Actually it is pretty straight - forward. What is meant by " rational behavior or interdependence?' Rational behavior in game theory is the assumption that moral critique aside, the players in the game will act in a way which provides them with the greatest benefits...
Interdependence is the idea that what one player does will directly affect the other and vice -versa. By players I am talking about any two inter dependant variables, whether they be people, countries, animals etc. Game theorist take apart a situation involving two players and systematically analyze their objectives and their potential outcomes. In doing so they are able to create models which replicate the basic motives each player has and diagram the outcomes... Game theory is something that to some extent all of us have experience in. Dealing with spouse, co-workers, business partners, car sales people all involve some sort of relationship of give and take.
So you see, we are not immune to the concepts of game theory. The theory requires us to understand and practice the art of strategy, and strategic thinking. Sounds like something we use in chess? Well you are absolutely right, but these same concepts are used in ever day decision making..
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