Learning to model human behaviour and our choices
The Game Theory and examples
Before I dig right into what I’ve been itching to share, Season 2 of The Grinders Table podcast is now live!!! 🕺💃
Kicking off Season 2 with a conversation with Kriston Wilson who, dare I say, blew my mind with her thought process as well as everything she has achieved.
Please listen, subscribe and share with someone new - Apple, Google, Spotify
I recently shared on The Game Theory via my Instagram and I got some interesting feedback which has prompted me to share it with you all. You can read the original post here.
The Game Theory helps anyone model decision-making based on the actions you think others are taking or will take. Of course, there are limitations to this as life isn’t always black and white. However, the Game Theory can be used in almost anything in life - from playing monopoly, to negotiations, training, product development, romantic relationship etc.
I’m sure you’re asking how?
I’m going to be explaining with an example originally formulated by American mathematician Albert W. Tucker. I used a different example in my Instagram post so you should check it out.
Albert W. Tucker’s example was quite an interesting one.
Two members of a criminal gang, A and B, are suspected of committing a robbery together. Each prisoner is in solitary confinement with no means of communicating with the other. The prosecutors lack sufficient evidence to convict the pair on the principal charge. The prosecutors hope to get both prisoners on a maximum sentence in prison or a lesser charge.
Simultaneously, each prisoner is concerned only with getting the shortest possible prison sentence for himself; each must decide whether to confess without knowing his partner’s decision. Both prisoners, however, know the consequences of their decisions which are:
if both confess, both go to jail for five years;
if neither confesses, both go to jail for one year (for carrying concealed weapons); and
if one confesses while the other does not, the confessor goes free (for turning state’s evidence) and the silent one goes to jail for 20 years.
Here’s what an illustration of the scenario looks like:
Now take a moment to look at the scenario illustrated above. What do you notice? Any of the prisoners will be punished less for betraying the other right?
However, as a group, both prisoners of fare better by cooperating(remaining silent).
So the prisoner faces a real dilemma, cooperate or betray? Let’s not forget that both do not know what the other will decide and might ultimately betray each other to get the lesser optimum solution.
How does this apply in life?
A pair working on a project. You will probably do well if your partner does all the good work but even better if you both put in a similar effort since both will get the same grade. But if neither of you does the work, you both fail.
Two parents taking care of a crying baby. The relationship thrives if both parents contribute to child care when the baby cries at night but the relationship may suffer if only one person is saddled with that duty. And far worse, if none take responsibility.
The prisoner’s dilemma demonstrates that two rational people might not cooperate even if it is in their best interest to do so. And life is usually messier than models can capture.
The point is, understanding what your options are while also considering your feelings and the feelings of others will help you make better decisions.