354: Game theory

<p>The boys drink and review Partake IPA, a no-alcohol beer, then discuss game theory. </p> <p><br></p> <p>Game theory is an attempt to express the calculations that go on in a game as mathematics. It makes certain assumptions. </p> <p><br></p> <p>1. The game has to include multiple players </p> <p>2. The players must interact with each other </p> <p>3. There needs to be a reward </p> <p>4. You assume the players act rationally </p> <p>5. You assume the players act in their own personal interest </p> <p><br></p> <p>Those things are not always true in real life. </p> <p><br></p> <p>One goal of game theory is to figure out what the best choice is no matter what the other player does. This is called the &quot;Nash equilibrium.&quot; </p> <p><br></p> <p>Two common games in game theory are The Prisoner&#39;s Dilemma and The Ultimatum. </p> <p><br></p> <p>&quot;The Ultimatum&quot; game shows that people don&#39;t always act rationally in their decisions. </p> <p><br></p>