Game Theory Overview

Game theory treats decision-making situations as games with defined rules, where various actors, or players, interact to maximize their outcomes. This framework allows for the analysis of behaviors based on rational self-interest, although it often operates on questionable assumptions, such as everyone being purely self-interested and able to quantify their desires. An important aspect of game theory is its exploration of human behavior through different scenarios, yielding insights into evolutionary psychology and social interactions. The discussion in the episode emphasizes that game theory is not merely theoretical; it plays a role in everyday decisions and interactions, influencing various life choices.