Game Theory and Society
Game theory is a branch of mathematics that deals with decision making when there are multiple decision-makers, called “players”, and outcomes depend on the decisions of other players. Game theory is based on the metaphor of a game, in which the rules of play and the outcomes are well defined. The game metaphor is a very useful abstraction. Game theory is used to understand behavioral strategies in economics, evolutionary theory, politics, warfare and other domains. It is especially important for understanding how society works. The Prisoner’s Dilemma The prisoner’s dilemma is an important concept in game theory. It illustrates the benefits and challenges of creating cooperation between selfish individuals. The prisoner’s dilemma is named after a thought experiment in which the police try to get two prisoners to confess and implicate each other in the crime. Unfortunately, that thought experiment is somewhat complicated and can be confusing. Rather than telling the story of the...