Sunday, July 10, 2011
game theory
John Nash created game theory. In game theory there is a certain game called the prisoner's dilemma. It is a dilemma that indicates that two people faced with the same decision might not cooperate even if it is in the best interest for both parties. The example in class was something like there is 2 people charged with a crime and they both go into separate interrogation rooms. If they both confess to the crime they will get 3 years each. If number 1 confesses and #2 doesn't then #1 will get 1 year and #2 will receive a 10 year sentence and vice versa. If they both do not confess they will both receive 2 years. The Nash equilibrium is for both of them to confess. This is because neither one knows what the other is going to do. If they did know what the other was doing they would both not confess and take the lesser sentence. But since they don't the only thing they can do is try to get their own sentence lowered. I couldn't even imagine being in that situation and the brutal headache i would get trying to figure out what to do and what the other person might do. In all honesty i would confess and sell the other guy down the river.
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That is pretty honest on your part. I applaud you for it. The prisoner's dilemma can be applied to a variety of circumstances, pro sports teams do it with contracts by making the parties sign a gag order. You can't use the other guy's number as leverage if you don't know it. It is a really interesting study on human nature.
ReplyDeletewow thats interesting view of game theory. It really opened my eyes on how the concept works
ReplyDeleteIt falls back to the economic law that people will work in their own self interest. It’s natural for you to try to do whatever is best for you. I mean the only way your not going to that is if your more concerned with the other persons well being. You can only move in the other persons well being if you would know the out come (variables is this example you don’t know) so naturally you would confess hoping for your sake it gets you a lesser sentence; and if your motive is the other persons betterment, your confession could get them off.
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