Sunday, December 6, 2009

Game Theory and my girlfriend

I was just thinking about subtle ways in which game theory applies to my daily life and I realized that relationships are the biggest games of all. Many decisions in a relationship can easily be framed as prisoners' dilemmas. (not that I feel like a prisoner in my relationship:) For example, my girlfriend and I have different preferences on what we do for New Year's Eve this year. If I give let her decide what we do, I'll end up at a party with all her friends and probably not have a great time, but she'll be happy. If I refuse to be flexible and make her go to my party, I'll be happy about the event, but will have an unsatisfied girlfriend. The nash may be that we go to one party for a while and then the other. This will lead to some satisfaction from both of us, but not as much as if one of us had completely gotten their way. So, as the game plays out both of us will try to convince the other that the pain of going to the other's party will be less than they think in order to get the biggest payout for ourself. This could actually increase the risk involved if this argument is effective. If I convince her to only go to my party, I will feel as though I have gained the greatest payout possible, but she may end up even more unhappy if she doesn't like the party and will complain to me, thereby reducing my total payout. That is just one example and it is a game that is not easily quantified. However, the give and take of a relationship is probably one of the most strategic games we play in life, whether we know it or not.

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