Application of Game Theory in Real Life
The game theory refers to a mathematical approach in studying strategic decision making. Game theory will lead to discovering the best outcome when given a set of choices to make by doing necessary evaluations on the benefits and costs of each of them. In game theory, there is a winner and loser. People make decisions every single day based on what is best for them or their loved ones. It is, therefore, possible to use game theory to improve or benefit in life. Some simple examples and instances where game theory helps you in getting specific skills include the following.
One if when you want to save money to purchase a car. If you are willing and wishing to buy a car at a cheaper price game theory will come in handy. What you do is know all the car dealerships around you with the kind of car that you need. Find out the best price they could offer. Once you explain that there are other dealers you are considering then the dealer you are dealing with will surely be scared to negotiate with you till you get the best price. The second instance is when you are investing in stock markets and shares. In this case, you are sure either to win or lose. The decision you put in play will expose you to either side. That is why you need game theory skills to calculate the possible outcomes that have a higher probability based on how the market is. You may also consider the company’s management and financial perspectives found in there. With such you are sure you make the right moves that will benefit you.
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seangametheory 