Journal Entry #16: Topic: Game Theory and Chicken

Journal Entry #16: Topic: Game Theory and Chicken 

I think that the assumption that people make rational decisions is correct; however, in who's best interest are the rational decisions made? The bad outcome isn't always inevitable. On the first time it is almost always inevitable. However, if the participants are able to communicate with each other and reach a settlement where the society benefits, a better outcome is possible. However, the problem is getting the participants to trust each other and keep the society's best interests in mind. Often times, this situation is done with prisoners, but it can also be used for economic decisions. This is called the prisoner's dilemma. The reason why the prisoner is most likely to achieve the bad outcome is because that is their own best individual choice. And that is the same for the other prisoner. With communication, they can both help each other and reduce the social loss by staying quiet, or not cheating. In the video, Nash says that the best outcome can occur if all of the guys work together. Because they already have no chance with the cute girl, they should just go for their second pick. So the second pick isn't offended because she was chosen first, and the first cute girl doesn't have multiple guys trying to chat her up, so that it is possible for one person to get her. However, if everyone goes for the cute girl, they will all get rejected, and their second picks will be offended because they were picked second, and none of the guys get laid (in this hypothetical situation, there could be some serious players).