Thoughts On Game Theory

A Quick Intro to Game Theory

Unfortunately, game theory wouldn’t have been very useful to play “green light/red light” (scene from Netflix TV show Squid Game — copyright: Netflix).

Examples of Games

Nash Equilibrium

On the left is mathematician John F. Nash, who introduced the concept of the Nash equilibrium. He won the Nobel prize in Economics in 1994. On the right is actor Russell Crowe as John Nash in the movie A Beautiful Mind. (image source: New Atlas)

Limitations of Game Theory

Why Study Game Theory?

  • Theory of Games and Economic Behavior — Written by John von Neumann and Oskar Morgenstern, who established the field of game theory.
  • The Compleat Strategyst by J.D. Williams — The content is a bit outdated, but it serves as a wonderful (mostly non-technical) introduction to the subject.
  • The Model Thinker by Scott E. Page — Chapter 4: Modeling Human Actors, provides a good overview of the rational-agent model.
  1. By introducing more players, the analysis becomes more complex. For example, by having a third player we could have a situation where two of the players decide to coordinate against the other player. In the domain of Cryptocurrencies, this is an example of a 51% attack. In this case, strategies would be different than if cooperation “outside” the game was not allowed.
  2. The concept of the Nash equilibrium was introduced by mathematician John F. Nash in his Ph.D. dissertation on non-cooperative games in 1950.
  3. Daniel Kahneman, who is a psychologist by training, won the Nobel prize in Economics in 2002 for his work on behavioral economics.




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Iram Lee

Iram Lee

Software Engineer. Endurance sports enthusiast. Blog:

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