Game theory

{{sources needed}}
{{Mathematics}}
{{hatnote|Not to be confused with {{wpl|MatPat|Game Theory|,}} a [[YouTube]] show originally run by MatPat that's known for [[Game|gaming]]-related videos.}}
{{cquote|Only two groups in society actually behave in a rational, self-interested way in all experimental situations. One is economists themselves, the other is [[psychopath]]s.|||Adam Curtis, ''The Trap: The Lonely Robot''}}
'''Game theory''' is a way of modelling complex phenomena in simple, [[mathematical]] ways, showing gains and losses in the form of "points". It is used most often in [[psychology]], [[sociology]], [[economics]], and [[international relations]], to model how people act with each other, though [[Biology|biologists]] also sometimes use it to describe how non-human organisms<ref group=note>Or sometimes humans — humans are [[animal]]s, too — but human-to-human interactions are often better described with the other aforementioned sciences.</ref> interact with each other.  

In game theory, a particular model is referred to as a "game".<ref>[https://effectiviology.com/look-forward-reason-backward-principle-strategic-thinking/ Look Forward, Reason Backward: A Primary Principle of Strategic Thinking], from Effectiviology</ref><ref group=note>The term "game" as used in game theory is not limited to what most people would think of as a [[game]] (i.e. {{wpl|Sport|sports|,}} {{wpl|Board game|board games|,}} [[Fun:Playing cards|card games]], [[video games]], etc.); the analysis of ''that'' is better known as a {{wpl|metagame||.}} While game theory can certainly be applied to the analysis of metagames (and the development of a metagame can be seen as an application of game theory), that is only one of many possible applications.</ref><ref group=note>"[[Manosphere glossary#Game|Game]]" in the sense that [[pick-up artist]]s use it could be taken as an attempt to apply game theory to romantic and sexual relationships… the key word being "attempt", as they generally don't have the [[intelligence]], {{wpl|empathy||,}} or [[Morality|basic decency]] required to form or maintain healthy relationships or treat women as 
anything more than sex toys
 active, goal-bearing agents in sex and relationships.</ref> The most famous game is that of the [[prisoner's dilemma]]. However, there are as many games as there are possible situations to diagram. 

During the [[Cold War]], research into game theory received substantial [[US]] [[government]] funding to develop the [[Mutually assured destruction]] strategy for averting [[nuclear war]].<ref>{{wpa|Rand Strategy Assessment Center}}</ref>

In [[international relations]], it is now most used by [[neoliberalism|neoliberal institutionalists]] to model how states may engage in trade or other forms of cooperation, and how to induce "side payments" to reduce the inequity in the gains.

==Risks==
{{Main|Risk}}
A risk is a situation where the outcome is unknown, while carrying some chance of loss and/or injury. 

In many of life's situations, the only possibilities of gain include some risk, such as investing in a business or trusting another person. "Risk management" is the art and science of minimizing the risk inherent in a given endeavor, while maximizing the benefit, while balancing the two. Colloquially, "risky behavior" means activities that are perceived as having a very high risk to benefit ratio, especially if the risks can easily be reduced by simple means. 

Parts of game theory study the risk versus reward aspect of artificial and [[real life]] situations. 

==Some common games==
There are really hundreds of games in game theory, but the following are some of the most commonly referenced, and are common in introductory courses.

===Zero-sum game===
A zero-sum game is a situation, according to game theory, where for one person (or side) to win, another must lose an equal amount&nbsp;— i.e. that any advantage accrued by one party to the negotiations must be obtained at the expense of the other party or parties. Essentially: in the whole group of players, there is nothing to be gained or lost, only things to move from one player to another.

Many [[Fun:Playing cards|card]] and board games are zero-sum games, in that only one can win, and in that there are a fixed amount of winnings to be had.

Contrast this relatively artificial situation with the many real-life situations that are non-zero-sum games (see below).

One of the biggest disagreements between [[liberal]]s and realists in international relations has to do with the nature of the international economy, and whether or not it is a zero-sum game. Liberals maintain that cooperation can make everyone better off, and so it is not a zero-sum game. Others, [[Nationalist]]s in particular, insist that what matters isn't the absolute gains a [[state]] can make, but instead how well-off it is ''compared to other states''. This would then, indeed, be a zero-sum game. [[Balance fallacy|Probably the truth lies in-between.]]

====Prisoner's dilemma====
[[File:Prisoners dilemma.svg|thumb|right|165px|A diagram showing the basic strategies and outcomes for the prisoner's dilemma]]
{{Main|Prisoner's dilemma}}
The [[prison]]er's dilemma is a situation where two people who committed a [[crime]] are being interrogated in separate rooms, giving them two choices on how to act, creating three possible outcomes. We'll call the prisoners Prisoner A and Prisoner B. 
* If Prisoner A keeps his mouth shut and doesn't say anything, but Prisoner B spills his guts, Prisoner A will get the worst [[punishment]], while Prisoner B will walk free.
* Symmetrically, if Prisoner A speaks up but Prisoner B stays silent, Prisoner A walks free and B is severely punished.
* If both Prisoner A and Prisoner B confess, both get punished, but to a lesser degree.
* Lastly, if both keep their mouths shut, the police will not be able to convict either, forcing both to receive the least punishment for a different, unrelated crime.

The set-up is simple enough. The best result (from the prisoners' perspective) would be for both to stay silent and get off easy. Paradoxically, from the individual perspective, confessing is always the better option (if the other one stays silent, you walk free; if he blabs, you at least don't get the worst punishment). Things can get more complicated based on other factors, such as how much information each prisoner has about the decision the other is likely to make.

===Non-zero-sum game===
A non-zero-sum game is a concept in game theory in which the aggregate gains and losses between the parties involved can be greater than or less than zero. Essentially, it means that one person receiving gains does not mean that the others in the game must lose, and that losses do not necessarily translate into gains for other players. This is contrasted with zero-sum games where each loss or gain is associated with a corresponding loss or gain to other players, so that that aggregate total always sums to zero. Essentially, in the whole system, it is possible to increase or decrease the total amount of points.

Non-zero-sum games have been used to describe many important relationships both in psychology and economics. There are many famous games developed by researchers that tap into fundamental relationships between people. One of the most widely used and cited is the prisoner's dilemma game that has been used to describe many areas of human social interaction, from advertising to [[nuclear war]]fare.

Non-zero-sum game is used in the {{wpl|stock market||,}} international trade, investment, [[reciprocal altruism]], and information exchange/communication, among other applications.

====Coordination game====
A coordination game is a type of non-zero-sum game in which two or more players are rewarded for choosing the same course of action. Ruth Ben-Ghiat, a [[historian]] of [[fascism]] and [[authoritarianism]], took note of this type of game with regard to the 2025 Portland, [[Oregon]] protests against the unjustified and militarized operations by the [[U.S. Immigration and Customs Enforcement]] within the city.<ref name=benghiat>[https://lucid.substack.com/p/the-portland-chicken-has-a-degree The Portland Chicken Has a Degree in Game Theory: The Power of Humor, and Resistance Actions as "Coordination Games"] by Ruth Ben-Ghiat (Oct 14, 2025) ''Lucid'' (Substack).</ref> A protester, Jack Dickinson, popularly known as the Portland Chicken for his wearing an inflatable chicken costume to mock [[Donald Trump]]'s [[Deceit|false claim]] that Portland was a "war zone".<ref name=saslow>[https://www.wweek.com/culture/2025/10/09/an-interview-with-the-portland-chicken/ An Interview With the Portland Chicken: Jack Dickinson, 26, says, "We're winning this."] by Rachel Saslow (October 09, 2025 5:49PM PDT) ''Willamette Week''.</ref> Dickinson in an interview noted that he has a graduate degree in economics with a focus on game theory, and so would have been well-acquainted with the coordination game.<ref name=saslow/> The ridiculousness of Portland Chicken and other cartoon character protesters, according to Ben-Ghiat, had the effect of encouraging other people to protest (coordination), but also of making [[Department of Homeland Security|Secretary of Homeland Security]] [[Kristi Noem]] look foolish with her monitoring of the small protest from a safe distance.<ref name=benghiat/><ref>[https://www.yahoo.com/news/articles/maga-influencer-mocked-bragging-kristi-020607593.html MAGA Influencer Mocked for Bragging About Kristi Noem Staring Down ‘Army of Antifa’: ‘A Chicken and a Dozen People’] (October 7, 2025 at 7:06 PM PDT) ''Mediaite'' via ''Yahoo! News''.</ref> The coordination game is not just a strategy for protesters but also for [[coup]] plotters.<ref name=benghiat/><ref>''Seizing Power: The Strategic Logic of Military Coups'' by Naunihal Singh (2017) Johns Hopkins University Press. ISBN 1421422565.</ref>

==External links==
*[http://world.mathigon.org/Game_Theory An interactive explanation of Game Theory]
*{{wpa|Metagame}}

==Notes==
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==References==
{{reflist|2|80%}}

{{Sources needed}}
[[Category:Economics]]
[[Category:Games]]
[[Category:International relations]]
[[Category:Mathematics]]
[[Category:Psychology]]

Categories: Economics, Games, International relations, Mathematics, Psychology