Game Theory

thebusinessholics

In this segment, we discuss game theory and the whole concept behind it. In a Yale University lecture a couple years back, the professor set up an experiment where he put two individuals on the opposite side of each room with one sponge each. The game was simple: hit your opponent with your sponge. If you did not decide to throw the sponge, you would have to take one step forward which would increase your opponent’s chances of winning the game. As the two players took steps forward, one finally decided to throw the sponge and missed. The other opponent was easily keep taking steps forward and win the game. Game theory is the thought process that goes behind whether to throw the sponge or not. Watch this episode as we analyze other research study phenomena!!