Game theory is a field that mathematically studies strategic situations in which individuals’ decisions depend on the choices of others. Since ancient times, people have been interested in games such as chess and backgammon, and more recently, sports such as football, basketball and tennis have entered our lives. Game theory helps us understand and model such strategic interactions. This theory, which is based on mathematical foundations, is used in many fields like economics, political science, biology, psychology and computer science, allowing us to examine the dynamics of competition and cooperation in depth.

Let’s take a look at the most well-known strategy of game theory and social sciences: The Prisoners’ Dilemma. The Prisoners’ Dilemma is one of the classic and well-known problems of game theory. In this dilemma, the two accomplices are kept in separate cells and cannot communicate with each other. Both prisoners must choose between confessing or remaining silent. If both remain silent, each receives a short prison sentence. If one confesses and the other remains silent, the one who remains silent, receives a long prison sentence while the confessor remains free. If both confess, each will receive a medium-length prison sentence. In this case, even if both prisoners individually choose the best strategy, they may jointly face the worst outcome. The Prisoners’ Dilemma illustrates the difficulties and paradoxes of individuals cooperating while trying to maximize their own interests. This dilemma reveals that when individuals act rationally and look out for their own benefit, it can sometimes lead to worse outcomes collectively. The dilemma helps us understand how a lack of cooperation and trust can create problems in relationships between individuals and the consequences of strategic decisions.

The place where all the possibilities are collected in a game is known as the Nash Equilibrium. Nash Equilibrium refers to the equilibrium point where players make their strategic decisions in the best way and changing those decisions will no longer benefit them. For example, consider two companies: A and B. Each can set a high or low price. If both companies set a low price, both will get the best result and they won’t need to change their prices. This is the Nash Equilibrium. Game theory studies how strategic decisions are made. The Nash Equilibrium, on the other hand, shows the situation where these decisions are in balance, that is, everyone chooses the best strategy and does not need to switch to another strategy. This can be applied to many situations that we often encounter in daily life.

Game theory in economics plays an important role in determining the competitive strategies of companies. Companies develop pricing, product launch, and marketing strategies by anticipating their competitors’ possible moves. A good example of game theory is when two large retail chains plan discount strategies, and each side tries to achieve the most profitable outcome by taking into account each other’s moves. 

In politics, strategic interactions between political parties or states can be analyzed with the help of game theory. During election campaigns, parties take into account the strategies of their opponents when determining their promises, while states plan their negotiating and war strategies in international relations. 

Game theory in biology has a wide range of applications. Animal survival and reproduction strategies, resource sharing, predator-prey dynamics, etc. By using game theory models on topics, strategic interactions in the natural world become more understandable. For example, taking into account the behavior of males when making mating choices of female birds is an application of game theory in biology.

Game theory analyzes how cooperation and competition are shaped in social interactions, how people predict each other’s behavior, and how they make decisions accordingly. This, in turn, helps us better understand group dynamics and individual behaviors. The insights offered by game theory help us unravel the complexity of strategic decisions and interactions. The things that need to be done to browse the content offered by individuals determine the strategies. 

Ömer Çakmak