Game Theory And Human Rationality Essay

1480 WordsMay 10, 20166 Pages
Game Theory and Human Rationality Game theory is a popular resource for modelling economic, sociological, philosophical and many other situations. The Stanford Encyclopaedia of Philosophy defines it as “the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents.” Game theory has many uses, including describing and predicting ideal behaviour as discussed later on. It can be used to model and predict for example. There are, however, criticisms to game theory in regards to its ability to apply to human rationality and emotion. Due to the widespread use of game theory, this has become a popular area of research in economic, philosophic and even psychological theory. One can think of game theory as descriptive due to the fact we often use game theory to explain or justify people’s actions after they are taken. This is best seen in analytics of games or sports, where an analyst might weigh up the advantages and disadvantages to explain a player’s actions. An example of this would be a retrospective analysis of a chess game, where game theory can be applied to each move to explain why the player might have played a move that seemed illogical without further thought, but ultimately gains an advantage. This only works assuming both player and analyst are both rational or equally irrational. If this were not the
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