Game Theory: The Psychology of Game Theory - Introduction and Part 1

Cooperation in Game Theory and Geopolitics

The theory of social situations is how psychologists describe the game theory. We discussed the mathematics of game theory in the previous chapter and now we’ll approach game theory from a psychological point of view. This details how parties interact with each other. So decision-making, negotiation, and many other aspects.

Just like the previous section was broken down into parts, so will this one. The key psychological aspects of game theory I will discuss are:

· Cooperation – How intelligent individuals interact with one another to achieve their goals. In this definition, swap individuals for countries, and you have a key trend in geopolitics that will emerge in the coming decade. In some government structures, you have an individual calling the shots, such as a dictatorship. But democracy involves many experts who inform an elected leader to represent the general population. Do government structure and leadership personality have an impact on the quality of how players play the game of geopolitics?

· Information

· Prediction

· Zero-Sum

· Negotiation

· Networks

· Dynamic Games

· Biases and Knowledge Gaps

· Rationality

· The Psychology of Nash Equilibria

Then after a short section on economics in game theory, we’ll use everything we’ve learned to break down game theory in geopolitics. Can we create the ultimate prediction machine using game theory, or do we need the other trends of geopolitics to paint a full picture? As a reminder, the trends are as follows:

The Interconnected Geopolitical Trends of the Next Decade:

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Game Theory: The Psychology of Game Theory – Part 1

Cooperation

Leaders of the World

We elect leaders based on their policies, or others elect them based on their policies. Whatever the leadership structure of a country, or system of government, it boils down to an individual. Either running the show alone or representing the beliefs of a group. At a broad level, they represent an idea.