The Importance of Game Theory to Solve Today’s Problems

(Photo: fernandoprats/Flickr)

May 13, 2015

LANDsds Sustainable Voice News

Why You Should Care About Game Theory -It can provide the best choices in everyday decision making.

It seems that we’re only now coming to terms with the new reality that technology has wrought. And while there’s plenty to debate regarding the pros and cons, the one thing that cannot be argued is that there’s just more. More movies, music, books, apps, articles, independent restaurants, hipster eateries. And, as is the case whenever there’s more quantity, a smaller percentage of it registers as quality. As director Jason Woliner put it, it’s a “waterfall of garbage,” and, more often than not, we’re drowning.

But there is a way to navigate this new era of Too Many Choices. The answers can be found in game theory.

Despite a heady term that calls to mind algebraic equations requiring chalkboard walls that lift up to reveal entire second sets of chalkboard walls, game theory’s a relatively easy concept: It’s using math, rather than your intuition, to make decisions. It’s Moneyball, not just peering from a distance and saying, “Looks like an athlete to me.”

“From the outside it seems bizarre that a Congressional bill about water will contain a rider about prostitution or birth control, but once you recognize that what’s taking place is multi-issue bargaining and it’s advantageous to the parties, it makes sense.”

Game theory’s roots go back to the 1700s, but it wasn’t until John von Neumann and Oskar Morgenstern met at Princeton and co-wrote the 1944 paper “Theory of Games and Economic Behavior” that it became what it is today. Among their findings was that the best strategy in a “zero-sum game”—that is, when the winner of the contest gets everything—isn’t to maximize gains, but instead to minimize losses. Using the concept, von Neumann developed the infamous nuclear proliferation strategy of Mutually Assured Destruction, perfectly abbreviated to MAD, and pushed for the expansion of arms in retaliation to Russia’s proliferation. The “winner” of the nuclear apocalypse, then, would be left with a smoldering carcass of a planet, making the game far less compelling to play. The other two famed examples of game theory-driven thought exercises are The Monty Hall Problem and The Prisoner’s Dilemma. You can read about the former and all of its complexities here, but for sanity’s sake, I’m sticking to the latter.

The Prisoner’s Dilemma: You and your partner are caught by police and separated into two interrogation rooms. You can remain silent or confess. However, your decision isn’t the only one to consider, as your partner’s also deciding whether to keep mum or spill the beans. There are four possible outcomes:

  1. If both you and your partner stay silent, you each serve one year in prison.
  2. If you both confess, you each get three years.
  3. If you confess and your partner remains silent, you’ll walk and your partner serves 10 years.
  4. If you stay silent and your partner confesses, they’ll walk and you’ll get the decade behind bars.

Read more from Pacific Standard repost of “Why You Should Care About Game Theory” by Rick Paulas

Advertisements

LANDsds Sustainable Voice is a news platform to share interconnected ideas, innovation and observation-The Nexuses.

Tagged with: , , , , ,
Posted in Business, Business Developments, Economics, RESEARCH, Social Change, Sustainable Voice, Technology, Voice News

Have a Sustainable Day My Friend!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

land@landsds.com

Nexuses Images
Skinny Budget Slashing Budget Making some #Zen
What’s TRENDING This WEEK:

July 4, 2015
Fourth of July!

July 3, 2015
Aetna Buys Humana

June 26,2015
The US Supreme Court votes for gay marriage.

June 25, 2015
The US nation's healthcare, Obamacare was upheld by the Supreme Court today.

April 28, 2015
The Marriage Gay Rights decision from Supreme Court

April 27, 2015
Outburst and acts of violence in Baltimore after the funeral of Mr. Freddy Gray, 25 Black male

April 27, 2015
Chipotle Mexican Restaurant Chain decides no Genetically Modified Ingredients (GMO) to be served

April 27, 2015
Loretta Lynch, sworn in as first Black Woman Attorney General of the United States

April 26 -27, 2015
Tragedy in Nepal as 7,000 Reported Dead from Earthquake and Tremors

April 25, 2015
White House Correspondence Dinner in full swing. Jokes, Pundits and Politics

April 9, 2015
Walter Scott killed by police officer in South Carolina. The crime witnessed and video taped by Feiden Santana.

April 7, 2015
Billie Holiday 100th Birthday anniversary

April 2, 2015
Storm and hail expected through south and east.

April 1, 2015
California's drought will change the way the state operates

Nexuses Top News & Pages
We are glad your here!
Nexuses
Archives

LANDsds is the Green Sustainability Voice is dedicated to green, sustainability, green-tech and business contact us at land@landsds.com.

  • An error has occurred; the feed is probably down. Try again later.
  • Innovative Architecture Plyscrapers in Paris June 16, 2015
      Michael Green proposes plyscrapers for Paris  June 16, 2015 LANDsds Sustainable Voice News Vancouver architect Michael Green wrote the book on timber towers, and has made a name for himself building North America’s tallest. He is also great at that…Read more ›
    LANDsds Sustainable Voice News
  • Turning Miami into Next Silicon Valey June 1, 2015
    June 1, 2015 LANDsds Sustainable Voice News SHoP Architects has teamed up with West 8 to design a four-block development, aimed specifically at attracting technology businesses and turning Miami into “Florida’s Silicon Valley”. Located in Miami’s Park West neighbourhood, the 10-acre…Read more ›
    LANDsds Sustainable Voice News
  • BP Settles on Oil Spill for $18.7 Billion July 2, 2015
    July 2, 2015 LANDsdsSustainable Voice News   Big news as “BP to Pay $18.7 Billion for Deepwater Horizon Oil Spill” settled to support the environmental damage in 2010. “The federal government and the Gulf Coast states have reached a tentative…Read more ›
    LANDsds Sustainable Voice News
  • US Puerto Rico In Debt Crisis June 30, 2015
    June 30, 2015 By Dr. Tyra Oldham, LANDsds Sustainable Voice News As we the focus on Greece, Puerto Rico is in trouble. Puerto Rico a travel economy with cheap wages and high energy cost is under water. Puerto Rico a part of US…Read more ›
    LANDsds Sustainable Voice News
%d bloggers like this: