Game Theory | Decision-Making in Life


If life is indeed a game, there will be competition, self sabotage, and strategy. Game theory is a framework for understanding choice in situations among competing players. Game theory can help players reach optimal decision-making when confronted by independent and competing actors in a strategic setting.

Other examples of using game theory to make a decision in everyday life is when to change lanes in traffic, when to ask for something, or even when to wash the dishes.

Game theory is not just about games, but how and why businesses make decisions, and just about any decision based on valuing likely outcomes. In game theory, all of these situations are "games" since the people involved make choices based on how they value the possible outcomes of the choices. This is true even of cases where the decisions of a single person only affect that one person.

The game theory includes strategic thinking in which players make decisions by viewing various perspectives and by looking at the viewpoint of other participant players; also by analyzing their actions, reactions, & behaviors in particular situations.

  1. Game theory helps in predicting the decisions of other players related to investments, and based on these decisions, they can decide upon the strategies for themselves which maximize profit.

  2. Negotiating, Influencing, or Impacting change in life requires Game Theory.

  3. Decision making in new-unfamiliar environments requires GT.

    1. People

    2. Places

    3. Products

    4. Services

Reflect on your life, Have you ever Analyzed a chancing-situation and ended up talking to yourself trying to make the right decision?

Yep! that’s Game Theory, Using Critical thinking, analysis, probabilities vs possibilities.

“Gamer-thinking” is the  most effective an efficient way to achieve success – the state or condition of meeting a  defined range of expectations.

Since games like the Prisoner's dilemma present an apparent conflict between morality and self-interest, explaining why cooperation is required by self-interest is an important part of this project. The prisoner's dilemma is a paradox about co-operation. It shows why two "rational" individuals might not co-operate, even if it seems in their best interests. It is studied in game theory.