why game theory changes everything

[PsychoDsk]

Game theory formalizes strategic interaction among rational agents, modeling scenarios where an individual’s optimal decision depends on predicting others’ choices. It fundamentally alters decision-making by framing multiple outcomes as equilibrium points in multi-agent systems, rather than isolated optimizations.
In life, applying game theory sharpens social intelligence and conflict resolution by anticipating reciprocal behavior, enabling cooperation in Prisoner’s Dilemma-like scenarios or optimal signaling in competitive environments. This mitigates risk in negotiations and interpersonal dynamics.

Financially, game theory underpins market microstructure analysis, auction theory, and bargaining models. It enhances portfolio strategy by incorporating competitors’ probable actions, enabling exploitation of informational asymmetries and avoidance of adverse selection. Strategic foresight in zero-sum and non-zero-sum games improves resource allocation, risk management, and long-term wealth optimization.

Thus, game theory transforms abstract social and economic complexity into analyzable frameworks, empowering superior strategic choices in life and money.

 

[idkmanimao]

Game theory formalizes strategic interaction among rational agents, modeling scenarios where an individual’s optimal decision depends on predicting others’ choices. It fundamentally alters decision-making by framing multiple outcomes as equilibrium points in multi-agent systems, rather than isolated optimizations.
In life, applying game theory sharpens social intelligence and conflict resolution by anticipating reciprocal behavior, enabling cooperation in Prisoner’s Dilemma-like scenarios or optimal signaling in competitive environments. This mitigates risk in negotiations and interpersonal dynamics.

Financially, game theory underpins market microstructure analysis, auction theory, and bargaining models. It enhances portfolio strategy by incorporating competitors’ probable actions, enabling exploitation of informational asymmetries and avoidance of adverse selection. Strategic foresight in zero-sum and non-zero-sum games improves resource allocation, risk management, and long-term wealth optimization.

Thus, game theory transforms abstract social and economic complexity into analyzable frameworks, empowering superior strategic choices in life and money.

good thread

 

[vincentzygo]

Game

like league of legends?

 

[A_Ron_Kool_Aid]

Yeah it's amazing man.

 

[chadhamed]

Im to low iq to understand your white language but im gonna rep

 

[5'7" 3/4s]

but how do i apply game theory in a high iq way to account for how other rationale agents may behave and to optimize for the best outcomes, and also does rationale agent apply to just people or does it also apply to things that function generally so you can optimize your goals as well?

 

[PsychoDsk]

Im to low iq to understand your white language but im gonna rep

yo nigga
game theory basically about the moves you make when you know everyone has moves aswell yurt. you feel me lil nigga??
For example, when you're at a traffic light with ur SRT hellcat and it's red for everyone. U look around at those niggas in their gay ford fiestas and try to figure out what their moves are and what your move will be.

U wing it first and drive through the red first or you wait like a bitch nigga on those other faggots to go first.

Game theory is those 5 seconds of interaction between making ur decision based off knowing or thinking what decisions those other niggas boutta make

 

[PsychoDsk]

but how do i apply game theory in a high iq way to account for how other rationale agents may behave and to optimize for the best outcomes, and also does rationale agent apply to just people or does it also apply to things that function generally so you can optimize your goals as well?

To apply it in the best and most accurate way, model all players as rational agents who aim to maximize their OWN goals. Predict their likely strategies according to some human nature fuckery (their best interest) , and update your beliefs as you observe their actions. If you believe everyone acts according to his own best interest, this can help u in some uncertain or complex situations.

Rational agents aren’t just people, they include AI, firms, and any system acting to optimize outcomes. So basically, you can apply game theory to social, economic, and even technological systems to optimize whatever you want.

 

[SecularIslamist]

Im to low iq to understand your white language but im gonna rep

Prisoners dilemma is the best explanation of it.

 

[BigBallsLarry]

Im to low iq to understand your white language but im gonna rep

 

[aids]

Just learn microeconomics theory.

 

[afkaik]

but how do i apply game theory in a high iq way to account for how other rationale agents may behave and to optimize for the best outcomes, and also does rationale agent apply to just people or does it also apply to things that function generally so you can optimize your goals as well?

rational agent i think would apply to things that share the assymetry in values humans have (aka something like trading systems/derived from/study from human behavior), no idea how to apply it though.

 

[5'7" 3/4s]

rational agent i think would apply to things that share the assymetry in values humans have (aka something like trading systems/derived from/study from human behavior), no idea how to apply it though.

yes this thread should honestly be extrapolated into something more elaborate, like "how to discover the highest probability move a rationale agent will take next" (this is an attempt at me using OPs nomenclature but u get the idea) like i understand he said by understanding the best move a player can take, but how can I learn to understand this in not just people but systems?

 

[afkaik]

yes this thread should honestly be extrapolated into something more elaborate, like "how to discover the highest probability move a rationale agent will take next" (this is an attempt at me using OPs nomenclature but u get the idea) like i understand he said by understanding the best move a player can take, but how can I learn to understand this in not just people but systems?

ask chatgpt my nigga, my suggestion would probably be something along the lines of polymarket/prediction betting/financial derivatives /quant trading (if you're 120+ iq n blasting dihexa+semax+selank+1000 nootropics too)