Why Game Theory is Not About Competition

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Game Theory is supposed to show how businesses (and prisoners) can outdo each other to win out over their competition. While this is great in theory Game Theory actually shows us much more about how to get along with our partners, friends, and allies.

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[EconomicsExplained]

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[amosvibro]

EE: when was the last time you actually evaluated every competitors price?
Me being poor: literally every transaction

[EconomicsExplained]

As the real OG's would say, Snitches get less desirable nominal outcomes.

[aniaugus]

Did he say the Nobel Peace Prize for economics?

[nlz]

6ix9ine was a game theorist this whole time

[MoneyGist]

3:18 Game theorists fail to consider what happens to the snitch AFTER he's been released and his partner's buddies pick him up from the prison.

[podge]

The existence of patreon proving that people don’t act just in a rational self interest way.

[davidsdinero]

Game theory was probably one of the most interesting/funnest class I ever took in college💯👍

[ggee]

Nobel peace prize for economics??? 1:25

[MrYoyothecool]

lol "nobel peace prize of economics" at 1:24

[mawortz]

John Nash didn't propose game theory, it already existed. He came up with the Nash equilibrium for non-cooperative games.

[stickdownman]

Only thing I would add for the context of economics is that trade deals are more than about the mere economic impacts and also about exerting influence and building soft power relationships.

[tyroberts]

John Von Neumann invented Game Theory in 1928. He teamed up in 1944 to apply it in Economics. While the prisoners dilemma is a necessary first learning step, most real world applications involve win-win. Everybody is better off, it just changes by how much. Nash created one of the very few real world applications that actually are useful. Google uses one of the other ones. The problem of Games Theory in Economics is that they tend to be small closed transactions that rarely occur in real life, because of all the other choices people have.

[InvestorCenter]

I think everyone should study game theory. It was definitely one of the most useful classes I took in college.

[bolajix]

1:26 the Nobel prize has multiple sub categories for fields such as economics, literature, math, and "Peace". The Nobel prize for economics is separate from the Nobel peace Prize

[Croz]

"Time is money" really applies when assessing the value of options on the market. A great price for a reasonably cheap product isn't worth it if you have to spend several hours finding it. Even those who say "I'm really poor, so of course I do this" probably aren't really getting the cheapest possible price, spending several hours a day optimising their purchases, because they have other things to do, like work or study or chores. Of course if you're buying in bulk for a business it may be your job to do this, but even they have a limit, if the extra hours of salary spent on research isn't worth the saving the company makes, then it's better to go for the more expensive but more accessible price.

[nedvaught]

YouTube game theory: will too many ads placed in ever video on a channel exasperate the patience of regular viewers?

[jeffreyhuang]

6:04 Pepsi beat coke in every taste test. But coke has a cult following.

A man took a blind taste test and said Pepsi was better. When he was informed of his choice he stated "I have disappointed my family, and all my coke-drinking ancestors before me."

A grandma chose Pepsi in the blind taste test. Her grandchildren started laughing at her. They had both chosen coke.

I̶ ̶g̶u̶e̶s̶s̶ ̶I̶'̶m̶ ̶t̶h̶e̶ ̶o̶n̶l̶y̶ ̶o̶n̶e̶ ̶w̶h̶o̶ ̶t̶h̶i̶n̶k̶s̶ ̶t̶h̶a̶t̶ ̶b̶o̶t̶h̶ ̶o̶f̶ ̶t̶h̶e̶m̶ ̶t̶a̶s̶t̶e̶ ̶l̶i̶k̶e̶ ̶g̶a̶r̶b̶a̶g̶e̶

[neoxenoz]

But that's just a theory, a game theory.

[theewatchfuleyeseesyou]

Finally a video that acknowledges this. Studying microeconomics you always end up asking why the book just assumes that people are so keen on finding the best deals when normally you just see them buying the shiniest thing in the store or leaving lesser-known brands out of the equation. Sometimes it's almost hard to follow since the theory kind of diverges from experience.