At first glance, game theory seems like something only economists or mathematicians care about. But step back, and we’ll notice its patterns everywhere. It’s in politics, in business, in evolution, and even in the smallest choices we make every day.
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Level 5: The Hawk and the Dove - How Nature Plays Games Without Thinking
So far, we’ve looked at game theory in scenarios where players make conscious choices. In classical game theory, rational human players decide whether to cooperate, betray, or mix up their strategies based on the payoff. But in nature, animals don’t sit around drawing payoff matrices. Their “strategies” take the form of instincts, habits, or genes. The ones that provide an advantage in survival and reproduction are the ones that spread over generations.
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Level 4: Mixed Strategies - How to Keep Your Opponent Guessing
In a penalty kick, the kicker has to choose where to shoot, and the goalkeeper has to decide where to dive. If either side becomes predictable, the other can take advantage. That’s where mixed strategies come in.
To keep the math clear, let’s imagine a simpler version of the game. The kicker can shoot left or right, and the goalkeeper can either dive left or right. The numbers in the table are the kicker’s chance of scoring (higher is better for the kicker).
If the keeper dives the correct way, the kicker’s scoring chance is low (30–40%).
If the keeper dives the wrong way, the kicker’s chance is higher (80–90%).
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Level 3: Stag Hunt - Why the Safe Option Isn’t Always the Smart One
Two hunters in a forest can either work together to hunt a stag, which will feed them both for days, or they can each hunt rabbits alone. Rabbits are easy to catch but a stag is worth more. A stag can only be caught if both hunters commit. If one decides at the last minute to chase a rabbit instead, the other goes home empty-handed.
Imagine this: you and a friend are caught doing something you probably shouldn’t have been doing (we’ll assume it’s mildly illegal, for story purposes). The police separate you in different rooms. They make each of you the same offer:
If you both stay silent, you each get a light fine.
If you betray your friend and they stay silent, you go free and they get a big penalty.
If they betray you and you stay silent, they go free and you get the big penalty.
If you both betray each other, you both get a medium penalty.
You can’t talk to each other. You have to decide whether to trust them and keep quiet or to blame them.
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Level 1: Why Everyone Is Playing Games (All the Time)
This morning, you probably played at least three games before you even finished breakfast.
You just didn’t notice. Maybe you made a decision on whether to hit snooze or wake up right away. Maybe you negotiated bathroom time with your sibling or roommate. Maybe you thought about whether to reply to that message right now or save it for later. None of these involved a dice or spinning wheel, but they were games. Not in the “fun” sense, but in the game theory sense: strategic decision-making in situations where other people’s choices affect yours, and yours affect theirs.
