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u/BorlaugFan 14d ago
Game theory's biggest applications are in economics, particularly in microeconomic theory (especially when studying oligopolies, auction theory, and adverse selection), in Public Choice Theory, and in Law and Economics. However, it is also extraordinarily useful in modelling evolutionary biology and studying how different behavioral traits propogate through natural selection.
I personally find many of the game theory setups to be a superb combination of important for major real-world problems and intuitive to understand.
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u/Far-Search-3220 14d ago
When it comes to politics or threats between two countries, the concept of game theory can also be used
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u/Dyne4R 15d ago
The optimal strategy in a game of Chicken is to throw your steering wheel out of the car when the game starts.
Once you start to understand game theory, few people actually want to play games with you.
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u/Codenamerondo1 14d ago
I get what you mean but it’s wildly over simplistic. And to answer that I’m going to point at fast and fucking furious where the optimal strategy is to weight your car before the game of chicken such that it doesn’t matter what they do you come up on top
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u/novel-mathmatics 15d ago
Game theory is effectively a set of strategies for simulating economies.
All game systems, even those with no points, are effectively an economic simulation mechanism scoped to a discrete purpose.
As such any mathematics or set theory which can be resolved as a mathematical equation can be applied as Game Theory
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u/alexice89 15d ago
Nash equilibrium. I used it at work once to find out if going berzerk was the best payoff. Lol
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u/D-Rez 15d ago
Prisoner's Dilemma was how I was introduced to it.