Yes, game theory is useful. It's basically the application of probability theory to situations where you are dealing with other intelligent agents. The military, in particular, has a long history of using game theory as a method of devising strategies to do things.
But it's also useful to economists for about the same reason -- how do I maximize my profit in an environment where someone else might be trying to maximize theirs, possibly at my expense?
Or you could have given the question an ounce more thought and asked why the Nobel committee would have given a prize for something totally useless.
Schneibster
Unregistered
- Joined
- Oct 4, 2005
- Messages
- 3,966
Game theory is related to decision theory, except that in decision theory, the outcome is dependent upon circumstances and a singular decision; in game theory, the outcome is dependent upon the decisions of multiple "players," whose decisions alter the circumstances for one another.
Game theory was introduced by John von Neumann and Oskar Morgenstern in 1944.
Game theory was introduced by John von Neumann and Oskar Morgenstern in 1944.
Game theory is extremely useful to explain individual behavior and why certain things have unexpected outcomes.
Supply and demand game theory shows that greedy behavior results in equitable results. Simple devices like the Prisoners' Dilemna show that rational decisions can result in the worst possible results. It can also show why altruistic behavior gain be greedy (from a gene's POV).
All these things could be described in other ways but game theory simplifies thing dramatically.
CBL
Supply and demand game theory shows that greedy behavior results in equitable results. Simple devices like the Prisoners' Dilemna show that rational decisions can result in the worst possible results. It can also show why altruistic behavior gain be greedy (from a gene's POV).
All these things could be described in other ways but game theory simplifies thing dramatically.
CBL
irinacristescu
New Blood
- Joined
- Oct 20, 2005
- Messages
- 2
Hi, my name is Irina Cristescu and i am a student in the 4th year of study at the Faculty of Psychology. This year i must elaborate a final diploma paper, and i have decided to study Game Theory in Psychology, especially in the domain of Organizational Psychology. In my country this domain is not yet developped, so I have found little if not no books at all in the library of my faculties (i also study sociology). So, not having acces to books, i tried the ressources on the internet, and i have found that a new theory has been developed in Game Theory: Psychological or Behavioral Game Theory. The ortodox Game Theory sustains that the decident is rational, and he takes the decisions on the basis of rational calculus. But here comes psychology and says that decidents are not emotional geniuses, and that they are not always rational, because of the interference of psychological variables.
This is the lead i tend to follow.
But I havn't studied Game Theory at school, and the internet ressources are very vague and not very helpful if i don't have a few directions to follow. I really need a psychological approach. I know that two nobel prizes have been won on the psychological approach in Game Theory, in 2002 and in 2005, but i couldn't find any detailed informations about the work of Schelling, Aumann, Kahneman, Smith, the winners of the prizes.
I would be very grateful if somebody could recommend me a few directions, suggestions about a psychological/organizational approach on game theory. I feel alone in a country where nobody I asked knows anything consistent about game theory, nobody can give me directions or reccommend me materials to read.
I would be very greatfull if you could help me, i really need help.
Thank you very much,
With respect
Irina
ps: sorry for the grammar errors, my english is not exactely accurate
This is the lead i tend to follow.
But I havn't studied Game Theory at school, and the internet ressources are very vague and not very helpful if i don't have a few directions to follow. I really need a psychological approach. I know that two nobel prizes have been won on the psychological approach in Game Theory, in 2002 and in 2005, but i couldn't find any detailed informations about the work of Schelling, Aumann, Kahneman, Smith, the winners of the prizes.
I would be very grateful if somebody could recommend me a few directions, suggestions about a psychological/organizational approach on game theory. I feel alone in a country where nobody I asked knows anything consistent about game theory, nobody can give me directions or reccommend me materials to read.
I would be very greatfull if you could help me, i really need help.
Thank you very much,
With respect
Irina
ps: sorry for the grammar errors, my english is not exactely accurate
Substitute "short-sighted" for "rational", and you'd be correct. The best strategy for dealing with the repeated Prisoners' Dilemma is rational by definition.
Hello Irina!
We tend to have shorter, less detailed posts from newcomers but - there are posters who may be able to help you.
Send a pm to Stimpson J. Cat and Tez
Both are wizzes at this sort of subject.
irinacristescu
New Blood
- Joined
- Oct 20, 2005
- Messages
- 2
Thank you for your suggestions
Hi, Diamond
I am sorry for the long message I have posted...I express myself with more difficulty in english and i didn't knew exactly how to make myself understood
Thank you very much for your suggestions, i will contact Stimpson J. Cat and Tez and I hope they could help me.
I am very glad that someone "listened" to me, now i don't feel so alone
.
Thank you and have a good day.
Irina
Hi, Diamond
I am sorry for the long message I have posted...I express myself with more difficulty in english and i didn't knew exactly how to make myself understood
Thank you very much for your suggestions, i will contact Stimpson J. Cat and Tez and I hope they could help me.
I am very glad that someone "listened" to me, now i don't feel so alone
.Thank you and have a good day.
Irina
gnome
Penultimate Amazing
- Joined
- Aug 5, 2001
- Messages
- 14,862
What about a single-shot Prisoner's Dilemma?
If I remember correctly, the correct choice in the standard game is to turn informer and rat out your companion.
Jeff Corey
New York Skeptic
- Joined
- Aug 2, 2001
- Messages
- 13,714
And then enter the Witless Protection Program and have you and your family suffer a gristly death.
gnome
Penultimate Amazing
- Joined
- Aug 5, 2001
- Messages
- 14,862
The dilemma, of course, is that if both parties make the "correct" choice they get screwed.
DevilsAdvocate
Philosopher
- Joined
- Nov 18, 2004
- Messages
- 7,686
Try http://en.wikipedia.org/wiki/Prisoner's_dilemma. It has lots of basic real-life type examples.
Game theory is very cool and can be very complex. Actually the principal of game theory is to be "useful" or "practical". It takes into consideration that in practical "useful" decisions and transactions there can be benefits to being dishonest, lying, cheating, etc. And can calculte the effects of being dishonest or dealing with someone who is dishonest.
At a more subtle level, it can be used to calculate the benfits of a trade. Especially when you are offering and being offered a number of trades, and the same is true of other players. And even more especially if the values of the trades are future values that are unknown but within certain value ranges.
I just need to figure out how to apply this to my fantasy baseball league...
Chaos
Penultimate Amazing
- Joined
- Sep 15, 2003
- Messages
- 10,611
Hi, Diamond
I am sorry for the long message I have posted...I express myself with more difficulty in english and i didn't knew exactly how to make myself understood
Thank you very much for your suggestions, i will contact Stimpson J. Cat and Tez and I hope they could help me.
I am very glad that someone "listened" to me, now i don't feel so alone
Thank you and have a good day.
Irina
Hi Irina,
nice to say you´ve found the way.
Don´t be ashamed of your English. When I cam here two years ago, someone (not an English native speaker either) gave me some good advice that I now pass on to you: if someone makes insulting remarks about your English, ask them how good their Romanian is...
And for the rest of you... I know it is not much, but the opportunity is too good to pass up, so I´ll just brag a bit.
http://www.eblaforum.org/library/hss/gametheory.html
Feel free to comment.
[bad joke]
That's OK. My grandma is dead too.
[/bad joke]
No worries. You will find that most of the posters here are American, so you'll feel right at home.
Hint #1:
Say "physics" when you talk to Stimpy. It gets him off.
Hint #2:
Offer to buy Tez an Australian beer. I know, I know: It's not real beer, but it works for/on him...
Did they clean the tables in Las Vegas?
Hi Irina,
nice to say you´ve found the way.
Don´t be ashamed of your English. When I cam here two years ago, someone (not an English native speaker either) gave me some good advice that I now pass on to you: if someone makes insulting remarks about your English, ask them how good their Romanian is...
"Cam"?
And for the rest of you... I know it is not much, but the opportunity is too good to pass up, so I´ll just brag a bit.
http://www.eblaforum.org/library/hss/gametheory.html
Feel free to comment.
You asked for it, mate...."How good is your Romanian?"
(Interesting stuff, though....good summary, and well written, too!)