How Decision Making is Actually Science: Game Theory Explained

With up to ten years in prison at stake, will Wanda rat Fred out? Welcome to game theory: looking at human interactions through the lens of mathematics. Want to learn more? Join Hank Green and play along in this fun new episode of SciShow!
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Sources:
www.khanacademy.org/economics...
levine.sscnet.ucla.edu/general...
assets.cambridge.org/97805213/...
• GTO-7-03: The Shapley ...
link.springer.com/chapter/10.1...
www.gametheory.net/dictionary/...
Image Links:
en.wikipedia.org/wiki/John_Fo....

[@kjs8719]

Watching this in 2020. "Did you interact with anyone today?" No. No I did not.

[@tarananantasagar2999]

factsssssssssssss

[@proprietor4417]

Lock down

[@proprietor4417]

Corona bias

[@kjs8719]

I went to drop off some toilet paper to a friend, thinking I was going to leave it on her porch and back away. She opened the door, grappled my shirt, dragged me in, and through me on the bed. If that's the way isolation effects women, this can go on forever 🤣

[@ahsanhabibsowrav7313]

Only 20's kid will understand

[@matthughes65]

"Did you interact with anyone today?" ha... ha...

[@gustavomatias4096]

You were practicing for 2020

[@user-kx8pu6ys5i]

Hehe

[@p.bamygdala2139]

Hi from Sept 2020. Lolz.

[@you_were_the_chosen_one]

Not anymore

[@Skynet_the_AI]

Always

[@AwokenEntertainment]

Love how you break-down what is common sense to most.. it really forces me to understand why I think a certain way in situations where I'd normally think automatically

[@haythmman]

you can gain a better understanding of how the mind works in the Critique Of Pure Reason by Kant.

[@henrykashyap8913]

Most of the investor thinks like that.... Simple And normal thing....

[@jinjeredge]

5:55 "DUMMY PLAYERS HAVE ZERO VALUE" *Luigi* would like to speak with you.

[@evm6177]

🍷😆 Yessa wella it issa abouta timezee we have a little chat about zzaat!⌚

[@wingedhussar6624]

@@evm6177 Lets wait for some italian guys to resspondd to yorr comment

[@wyattcastle7225]

If I were a betting man I'd say that there is at least one comment in here referencing Matthew Patrick.

[@joiefulbird9335]

Wyatt Castle 95% of the comments on this video mention MatPat. I'd say that'd be a safe bet to make

[@crojonphoenix]

His own comment is inclusive to the betting parameters, thus allowing to win his bet at a rate of 100%

[@wesofx8148]

But that's just a theory

[@DrSmart20]

A GAME THEORY!!!

[@atahannd.9937]

Thanks for reading.

[@razvan50087]

HELLO INTERNET; WELCOME TO GAME THEORY!

[@surindervirdee2466]

This is probably one of the more concise, bitesize videos on understanding game theory, very helpful.

[@coastermania17]

that example reminds me of the game show Friend or Foe. two players have acquired a certain amount of money based on their performance in the game. Then at the end they make a secret decision. If they both choose the Friend option, then they split the winnings 50/50. If one chooses Friend and the other chooses Foe, then the person who chose Foe gets all the winnings and the other person leaves with nothing. If both people choose Foe, they both leave with nothing

[@MindYourDecisions]

There is a big mistake in this video. The definition of "Nash equilibrium" in the video is actually the definition for a strictly dominant strategy: "A player in a game has found A STRICTLY DOMINANT STRATEGY when they make the choice that leaves them better off no matter what their opponents decide to do.” In the prisoner's dilemma, each player has a strictly dominant strategy to confess--it's better NO MATTER what others do. A Nash equilibrium, by contrast, is when each player has a strategy that is better GIVEN what others are doing. Each person is doing the best to outguess others, and mutually each person is playing a best response. Here's an example to illustrate the difference. Do you drive on the left side of the road or the right? There is no choice better for you "no matter" what others do. Your best choice is to match what others do: you drive on the left if others do, and you drive on the right if others do too. This game does not permit a strictly dominant strategy. But there are two Nash equilibria--when everyone drives on the left, or everyone drives on the right. Very few games have strictly dominant strategies. In contrast, every game* has a Nash equilibrium (*under certain conditions) Nash proved the existence of the equilibrium in his doctoral thesis at Princeton, and that is work for which he was recognized with a Nobel Prize and is the subject of the book/movie "A Beautiful Mind." I mostly liked this video and the Shapley value example is good. But the definition of the Nash equilibrium is a big error--perhaps include a note or annotation?

[@BennKay]

Thank you for an insightful comment! It makes a nice change from the constant babel

[@anshuman8949]

Thank you Presh for the explanation

[@arbenmana8219]

Funky Com Lag Cat The logic is that each player is rewarded for the help that they gave the other, regardless of their personal skill. Think of it like this: If I made 10 cookies and sold them for 10 dollars, I would only make 10 dollars. Same for you, if you only made 20 cookies and sell them you would make 20 dollars. However, when teamed up, we make 10 extra cookies. Now lies the question, how much does teaming up with you benefit me? (And the other way around). That is what we are trying to determine. I am no pro at this either, but from what I have looked up so far this is what I was able to make up.

[@briseboy]

Another mistake is to ignore the differences in optimum outcomes - whether selfish or no - that must occur when the game is repeated. After a certain number f repetitions, the best personal outcome differs quite a LOT! While prisoner's dilemma posits two self-interested players, excluding any others affected by players' actions, that presumption falsifies any biological organism's reality. Further, temporally delayed response remains a factor in real situations. Game Theory DOES consider such reality, but within the complexity so brushed off by the video, other equilibria exist. ANYONE interested in social dynamics, economics, ecology, population dynamics, needs to explore game theory far more deeply. The role of uncertainty can be quantified to variable extents, and overly simplistic accounts, even in introductions, may leave people (prominently shown in the drive-by twits of almost all the comments). So, to the video posters: more work is needed on the closing generalities and disclaimers.

[@Plotscheck]

MindYourDecisions v

[@socrat33z]

1. "pioneered by John Nash"! John von Neumann is the father of game theory! John Nash found the equilibrium exist in a much more general class of games, but his contributions are less significant than von Neumann's. 2. (4:26) "no matter what everyone else decides to do" The whole purpose of studying game theory is that others actions affect your outcomes, and perhaps your optimal actions. You should say: taking into account what everyone else decides to do. The above condition doesn't make sense in a game theory context.

[@jbzaddy1980]

Thats true

[@trevorfielding7910]

I'm glad you guys went with SciShow Psych. I've been loving those vids!

[@maxr8392]

Ive be running this in my head to make situations work for me without even realising it was a thing.

[@freddygraffam6463]

"Did you interact with anyone today?" I don't like your tone there hank. Feels a little personal.

[@user-ho1vt8vz2l]

That was very offensive

[@Halo-lg7rq]

freddy graffam well it’s a lot more personal in 2020

[@NukelearFallout]

@@Halo-lg7rq Only to you.

[@NukelearFallout]

Hence why it's "Personal".

[@odinsteffes5278]

matpat comments incoming.

[@AppleberrySmith]

GAME THEORY!!!!!!!!!!!!

[@911gpd]

what's a matpat please ?

[@samwisegamzy]

he's a youtuber. his channel is called game theory.

[@911gpd]

samwisegamzy ok thanks ;)

[@sumvs5992]

thor steffes much copyrighted infrigemund

[@imdeexpert5828]

Legend. Took my thoughts out of my mouth, I didn't think people has gone deep into studying this stuff wow!

[@joshuachristofferson9227]

Thank you so much for the de-obfuscating a very complicated subject that to be honest I've never even started to get, until now. Thank you again!

[@callumleask1053]

I can't be the only one expecting a matpat crossover

[@steve6869]

Cont3mplation no mat pat sucks ass

[@coyote9594]

you're not alone

[@masterzerocomment2840]

well it's just a theory A GAMETHEORY LOL............. kill me

[@callumleask1053]

Did I just start an internet fight? Check that off my bucket list XD

[@cmac1100]

Cont3mplation I actually clicked on this video thinking it was a game theory 😿

[@johnnydoe6696]

That's just a theory, a GAME THEORY! Thanks for watching!

[@bitflipped5337]

the prisoner dilemma made me remember a scene from The Dark Knight, that ship scene. Just sharin

[@pavangavit89]

Spot on

[@wartyrant8627]

Same

[@davidmartin9858]

Very very good demonstration of SIMPLE Game Theory. A bit fast paced for a beginner, IMO, but straight to the point and easy to comprehend! Awesome video.

[@PianoTribe]

I noticed two errors in the video: 1. Game theory was pioneered by von Neumann and Morgenstern in their 1944 book. John Nash came later. 2. The definition given of a Nash equilibrium is actually a dominant strategy. A Nash equilibrium is more general.

[@bluedonkey180]

A nash equilibrium is when you know what your opponent will do

[@phantasm1234]

Can you do one on cerebral aneurysms? I had one rupture at 19 and would love to learn more!

[@connorshea9085]

Why do you comment this on every video?

[@iota-09]

i fi may, i'd be more interested in more rare stuff like Guillain-Barré syndrome and other parlyzing illnesses.

[@erikthegodeatingpenguin2335]

I notice you comment this on a lot of SciShow's videos. Nothing wrong with that, you just want them to make a video educating us about cerebral aneurysms. However, your comment is not the best at grabbing attention the way it needs to be in order to get its own video. Might I suggest a revision: "Why do I have cerebral aneurysms around my anus?"

[@98Zai]

I too, have seen your comment before. I'm sure they have also seen it. However, you as a victim of an aneurysm obviously know everything about them first hand and from communication with your doctor. Perhaps you should phrase it more like "My best friend/relative suffered an aneurysm and is now in the hospital, I have dyslexia so it's hard for me to learn from reading the very good Wikipedia article on the subject, Please make a video on it to help me understand what my friend is going through and what to expect from his/her recovery!".

[@erikthegodeatingpenguin2335]

98Zai Mine's still better at baiting attention!!!1! :P

[@kevin_delaney]

That was GREAT. Keep doing what you are doing! :)

[@SkillGame]

I've studied a lot of game theory and this is one of the best introductions I've seen to these game types. One small thing, a Nash Equilibrium is achieved when no player can improve their result by changing strategy. As the brief annotation mentioned, you described a Dominant strategy. Curious viewers should look into optimal strategy for Prisoner's Dilemma in an iterated game (ie. multiple rounds of the same decision). It may be the best mathematical model available for the axiom "It doesn't matter if you win or lose, it's how you play the game."

[@morgengabe1]

As someone who's been stuck watching intro game theory videos for about 5 years, this is the best one I've seen to date. Very clear and concise description, Sci.

[@GIGADEV690]

​@Aymanne 1 year has passed only one like coincidence are you alive?.

[@parsont.689]

Von Neumann and Morgenstern pioneered/created Game Theory in the 1920s-1940s. Nash made important contributions.

[@zainbaloch5541]

I had to make a presentation on Game Theory. Your video really helped me to understand the concepts. Thank You!

[@ashutoshkumarjha41]

Awesome explanation using simple example and words!

[@DsLink1306]

Hank, you didn't end the video right. See according to game theory your ending was supposed to be. "And remember its just *Science*.....*Delicious Science* Thanks for *Learning*

[@oyuloavaznav]

aaayyyy

[@oyuloavaznav]

+Kyle C yes?

[@irok1]

Wow...saw that coming

[@sam-yd1qy]

Ayyyyyy

[@notchpoodles5864]

Lol ur quite right :)

[@RykGood]

Thank you, Hank! You totally just gave me a new title for my podcast. I'll let you know what it is once I get it rolling.

[@robertschlesinger1342]

Excellent video on the basics of Game Theory. My 17 year old learned a lot from it. It may also be worth mentioning that Game Theory is put to good use by economists, military strategists, and policy strategists. Differential Games are more difficult to axiomatixe and compute, but often more accurately reflect real world situations. Military strategists generally use Differential Game Theory, as situations are often continuously changing.

[@bozimmerman]

One could even argue that game theory is an extension of economic modeling, since it borrowed ideas like marginal utility and others...

[@robertschlesinger1342]

@@bozimmerman So true. Arguably the first book on the subject by John von Neumann and Oskar Morgenstern was essentially an econometrics sort of book, as revealed in the book's title.

[@aditya.mankare]

Simple and to the point! Loved it.

[@roberttai2522]

Great video on explaining the basics of Game Theory! Would you ever do a part two which explained the Normal Form vs. Extensive Form, further exploration of the Nash Equilibrium, or even the math behind certain ideas like the Cobb-Douglas utility function?

[@celts20ak]

This is an amazing explanation, great video!

[@palakawarrior]

awesome vid, thank you. i'm definitely a follower of your channel now.

[@dragonofthewest8305]

Sun Szu says to protect yourself against defeat is in your own hands but to defeat the enemy is the hands of the enemy himself so a good Worrior can garantee he protect himself against defeat but cannot garantee he defeats the enemy

[@chriswebster24]

Well, Mama says Sun must be really dumb then. If I’m bigger and stronger than you are, and I also have a machine gun, and you have nothing (in other words, I’m more powerful than you are), then I can guarantee that I’d be able to defeat you, and there’s no way you’d be able protect yourself against defeat. It doesn’t sound like your dumb friend put very much thought into his foolish words. You probably shouldn’t take any more bad advice from someone as dumb as he is. With a name like Sun, you’d think he would be a little brighter than that, but apparently not. I guess his ridiculous name is most likely his mom’s fault, though, to be fair. Obviously, being a moron must run in their family. I’d love to know what sort of a brilliant first name the bimbo who named him has. It’s probably something extremely intelligent, like “Muther,” or “Mum Uv Sun,” if I had to guess 🙄 Jeez. What a dumb family the Szus are 🤦🏿‍♂️

[@yusafmalik5171]

@@chriswebster24 your either very racist to class someone's intelligence based on their name alone or to incompetent to understand his book at a deeper level. That book is not about 1v1 but huge army's on the battlefront. You probably think machiavellian teachings are also rubbish just because you think in such simple terms...

[@samuraijosh1595]

@@chriswebster24 Edgelord, calm down. This ain't Reddit.

[@grinofthegrimreaper]

Game Theory was one of the best classes I took last semester, loved it. I'm planning on taking Advanced Game Theory this year :D

[@Arkaeuss]

3:14 °MatPat crying in the distance°

[@user-zk7up6ie1i]

Awesome video, I have learnt a lot watching this one and others from this channel.

[@colinehagnier]

Love it! Discovered you with Crash Course - Psychology. So surprised to find you here! Great!

[@Mritunes89]

Can we do a part 2 to this. I love this. :D

[@Mariner35]

The only thing I could think of was "Zero Escape: Virtue's Last Reward". It's a great game based on the prisoner's dilemma. Great video, as always!

[@Articulate99]

Always interesting, thanks.

[@liudas5377]

That was very good and informative...thanks

[@nyx211]

8:47 - this video in a nutshell

[@Kastor774]

I can only pray for no cringeworthy posts on this video.

[@JoseGranny]

Sadly, too late.

[@JohnBASIL1]

BUT HEY...

[@cheapbuddha6345]

+Gay IT'S JUST A GAME TH-why are there game theories around my anus?

[@rd-6137]

because they couldn't fit on your ear.

[@pritammondal6839]

great explanation love it

[@dogaccelik5688]

Thank you for that kind of a inner information which also explains how the system can be settled by someone intending to set one.

[@pikamario99]

I instinctively recoiled seeing this in my recommendations before I realized who posted it

[@alemar5810]

This has helped me a lot to understand the theory. Thanks!

[@Antonio_Tennis]

Who

[@jullietgolf5289]

Thank you for your great explanatory information

[@jorgecullispuma3377]

Great video, thanks for the explanation!

[@MetaBloxer]

MFW I don't even have to keep scrolling into the comments section to know what a lot of them are.

[@gabemerritt3139]

But that's just a theory

[@Maelthras]

I use a running shapley value when I play chess, each piece in part of the coalition. I just didn't know what it was called, I assign each piece a value and keep a tally of how much each piece contributes towards capturing other pieces and advancing my position. Allowing me to make sacrifices that appear to be me losing but are me just positioning my opponent a certain way.

[@michaelstephenvargas8821]

I'm a chess player and sorry, but your statement is nonsense. Chess is a game of patterns and observation (not mathematical), the only use of the shapley value is how much are pieces/pawns truly worth in a given moment which can be compensated by the common Reinfeld values. Math and Chess don't have a relation to each other, I am a dumb-dumb in math for example but can crush in chess.

[@Maelthras]

@@michaelstephenvargas8821 it's all boiled down with math for me.

[@kingbradley3402]

@@Maelthras if chess could be boiled down to maths, then we'd have a computer (or atleast an algorithm) of beating the game. Which is impossible. Chess is outside even the field of NP problems. It's also why newer engines always become better. What you're saying already happens. Pieces already have value (measured in how many pawns they are worth, which themselves are worth a point). But knowing this doesn't help you strategize or win because as Michael correctly points, chess is a game of positions and patterns.

[@Maelthras]

@@kingbradley3402 Exactly, you assign weights to positions and strategies. As the game evolves you are always assessing your position against previous and future in an attempt to come out on top. Just so happens it feels more mathematic to me as I do so.

[@DanielVerberne]

I ❤Hank Green. I especially love whenever Hank is amused by the content he’s delivering - and here I’m thinking of a (SciShow?) episode where he talks about ‘most dangerous chemicals’, he’s hilarious. I also love any interaction between Hank and my other man-❤, Phil Plait.

[@uchenwogwugwu3567]

The lecture is just a tour on Game and a good introduction. We can dig deeper

[@DayumAli]

0:50 : - Like, did you interact with anyone today? - Me: ...... - Well you can probably..

[@PietroSperonidiFenizio]

everybody seems to be correcting the video, so I will also join the chorus. FOr once that I can. The winning strategy in the prisoner's dilemma is to defect only if the game is played only once. If you play another version which is repetitive prisoner dilemma, the winning strategy end up TfT (tiit for tat) where each player starts to cooperate and then copies the behaviour of the other player in the previous round.

[@hesamsarkhosh8525]

That was brilliant. very good explained.

[@mariogomez2153]

excellent video, well explained!

[@ramicky16]

I actually thought I was clicking on a matpat video haha! awesome video though hank! :D

[@garettmcafee1434]

I like how they re posted yesterday's vid

[@ThunderGun2]

Garett Mcafee I saw that too.

[@crazsomelizard6507]

what vid was it

[@photonicpizza1466]

+Crazsome Lizard This one, it got taken down yesterday

[@crodd92]

I want to study game theory now. Thanks for the video. 😊

[@ali.khosro]

Game theory was pioneered by John Von Neumann's paper in 1928 which completed by "Theory of Games and Economic Behavior" by Von Neumann (mathemarician) and Oskar Morgenstern (economist) in 1944. It mainly covered zero-sum games, expected utility (to deal with uncertainty, introduced in the second edition) and applications in politics, economics, and social behavior. In 1950, John Nash contributed a remarkable one-page PNAS article that defined and characterized a notion of equilibrium for n-person games. Above statements is paraphrased from Wikipedia and PNAS.

[@joshuac5656]

"Did you interact with anyone today?"....ahh life pre-covid.....

[@moeali5541]

Like Michael Scofield from Prison Break. He uses Game Theory to earn other inmates' trust and friendship for his own benefit.

[@sanyasri8080]

Thanks! I was searching for this for a long time. It was very nice

[@learningwithjojok5137]

Can you tell me how to study basic Game theory and give me more information about it please please 🙁🙁

[@sanyasri8080]

@@learningwithjojok5137 Well even I don't know very much about this topic. I was just searching for this topic because our maths teacher told us what would we study in higher probability. So I am really sorry. I really don't know what do you want particularly. But if you just want to know about it then you could watch a KZbin video on game theory basics or buy and read a book on it.

[@TanvirAhmed1990]

Great Explanation

[@hashmaps]

But hey, that's just a theory- a game theory! OH GOD SO MUCH MATPAT.

[@Ggdivhjkjl]

Tip: Don't bake with the Cookie Monster. It doesn't work out well for your profit margins.

[@adigur9146]

Awesome thanks !!

[@suryarout8225]

thanks....SciShow...So informative

[@you_just]

But hey, that's just a theory.

[@soullessstare]

a Game Theory!

[@oldsmay]

Wolfie Wolf Thanks for watch

[@LegendLeaguer]

3.141592653589793238 ing

[@Rum0r]

wow, such an original comment, I haven't seen it posted by anyone except you.

[@lucasng4712]

Whoosh

[@EAHblitzzz]

"Safety First, Then Teamwork."

[@EAHblitzzz]

Also, I just lost The Game.

[@mylesmedford3326]

I thought hurricane season was over?

[@keepermovin5906]

Eric Harshberger damn it I lost the game

[@priyajoshi3087]

Beautifully Explained!

[@TheTupinchepadre]

thank you!!!! i really learned a lot from your video, ill suscribe right *click* now... do you recomend any book to continue studiyng this???

[@suhailanaz]

Loved this video. Videos like these have made me change the way i used to think about of Maths!

[@Voldecourt]

If you want to learn more about game theory and you like anime/manga I suggest checking out the manga Liar Game! It's pretty entertaining and it teaches you a lot. Plus it's complete, which is always nice.

[@darelh1348]

Loved Liar Game!

[@fengardice]

Well, to be fair it doesn't teach you _a lot_ about game theory. It has its moments, but most of it doesn't actually involve game theory at all. It's nonetheless an absolutely worthwhile read.

[@sayur54321]

Would recommend "Code Geass" too.

[@maggieanne322]

thankyou

[@vivekkaushik9508]

I feel million times smarter now. Thankyou.

[@154bb]

Love this!!

[@SpartaSpartan117]

Crash course game theory anyone?

[@elliottmcollins]

Game theory gets annoyingly complicated pretty quickly in my experience.

[@MrCrashDavi]

please this.

[@CTViewer07]

But hey, that's just a theory: A GAME THEORY!!!!

[@hazelcarey8753]

That One Amiibo Hoarder why

[@that1valentian769]

Gunnar Carey Why... WHYYYY?!?!?!?

[@minervaalexia6074]

+

[@lorraineliu8636]

literally i saw this in my subscription box and i thought i was from the game theory channel

[@LennyLenward]

+That One Amiibo Hoarder that's a bit harsh

[@uuuuLma]

mega gutes Video, vielen Dank! 🤩

[@ramkumarr1725]

Life before Game Theory, Life after Game Theory :)

[@DavroC]

I would’ve loved it if they had matpat host this episode

[@ambermayo9443]

That prisoner's dilemma sounds like a great way to get false confessions.

[@jharlesgeorge431]

Kind of not actually. In this example, it is always most advantageous for the player to betray the other player. A player that selects the cooperative option is vulnerable to being taken advantage of and will serve either 2 or 10 year sentences each round whereas an uncooperative player will either serve 5 or nothing. Therefore, players are motivated to not confess, rather betray.

[@benlewis5312]

Not really. In practice confessions are verifiable and lead to useful intel. If not, the confessor receives no benefit. However it also leads to extralegal punishment for snitches to discourage confessors

[@vanrajsoni6801]

Awesome explanation

[@jeminkukadiya13]

The conclusion was amazing.

[@madhavtandon8093]

Hmm..Prisoner's Dilemma is basically like the part in The Dark Knight where The Joker offers the chance to people on the two ships to either bomb each other by a certain time, or they both get bombed.

[@amlaanbhattacharjee8001]

Exactly

[@nicholasquario8890]

Hello internet and welcome to game theory!

[@nerdnation1076]

L Lawliet *Theme starts playing as Mario jumps around.*

[@connorking984]

Sorefury it's a good KZbin channel. All about science behind video games

[@TheTetrapod]

No. It's memey cancer. At least watch Shoddycast. He's likable.

He theorizes about games, but scientifically he usually doesn't use game theory.

[@AppleberrySmith]

TheTetrapod I got news for ya....

[@SarathChandrabiochem]

Well explained thank you

[@harijoshi4517]

seems very impressive and wonderful interpretation.

[@The_Other_Ghost]

Never talk to the cops when split up.

[@SkeeterMakesGames]

No guys, not MatPat.

[@shasthaliyanage]

Good Stuff !

[@pauld7522]

Great intro in to game theory. I'll do further research

[@ThatOverkillGuy]

AND THATS A THEORY!!! A GAAAAAAAAAAME THEORY!!! thanks for watching

[@2002alexandros]

If I was him I would end the video by saying "but hey, it's just a theory, a GAME theory, thanks for watching"

[@arfatradite4147]

Video explanation always make better to me, thx

[@jonathandevries2828]

scishow psych is a hit!! now time for scishow life!!