Play Smarter with Game Theory
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.
Play Smarter with Game Theory
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.