Everything in life can be turned into a game, where you either win or lose. In many situation dealing with decision making you are faced with interpreting your opponent’s actions. This is where game theory comes into play. Game theory applies mathematics to a given situation where you might be influenced by other. So basically you need at least two people to play this game and you’ll need to understand both strategies and the possible outcomes.

From this video clip you are able to understand the basic structure of the game theory. The first rule can be useful to any business scenario. For instance, if you are going to negotiate it would be a bad strategy to tell the other challenger that you only want one factor. You’ll need to play the game and try to capitalize on it all, in order for you to gain more over all. Also in a negotiation you want to go first, thus you’ll be able to control where the game is headed, which brings me to the second rule control. You always want to appear like you have the upper hand. If you seem weak at any moment people will try to take advantage of that, so never show weakness.

Rule three “deception”, sad to say it but it’s an aspect of any game. For example, when you play a game of chess you are always trying to deceive and trap you opponent. The point of a game is to win and there isn’t any way you can win without some level of deception. This relates to the  movie “The Box”, your given a choice to either push the button or not. If you push the button then you will get one million dollars, but someone you don’t know will die. This illustrates the game theory because these player don’t know exactly all the information. Putting aside whats morally right ,any person that knows the game theory knows not to push the button based on the reason that there is no way to interpret where this is going to lead or the fact that you don’t know who the other players are. This means  you shouldn’t play because your lacking common information, making you just a pawn and being deceived on some level.

This brings me to survival.  In any game you engage in you’ll always look out for your best interest first, which is like the introduction clip of Saw. That whole movie is just one huge game of survival. Right off the bat a man is given the choice of killing Adam (stranger) or his wife Diana will die. You have to do what’s best for yourself but you don’t want to be condemned by your actions, so you are forced to bring out your survival instincts.  Rule five “ignore all the other rules”, when you are playing a game over or a new element is added you can’t apply the same rules. For example in the prisoner dilemma two men that committed a crime are put into two different rooms and are given two choices either: to confess or not.

As you can the best tactic is to confess, because it will insure that you wont have to serve the longest sentence, five years in jail. Now if this is the second crime they have committed together, then the whole game changes. Another crime together could have made an even stronger or weaker bond between the two men, hence you would have to follow a whole different set of rules

From the very beginning of this clip you can see that there is going to be flaws in this plan based on the Game Theory’s logic. When people feel that they are being treated unfairly, for instance the clip shows that the robbers are receiving the same share even know not all of them are contributing to the same amount of work, therefore  resentment would be created. When people have resentment they tend to not follow the plan or work as productive. So  you always want to eliminate this factor from happening in your game.

In any game you play you are not able to control every piece. Who would have guessed that a banker would have a Remington 870 in his office.  When hiccups like this happen you always need to stay calm and in control, which the joker did just fine by having his pawn do the dirty work. A more realistic example would be from the introduction clip depicting the movie 21. When you are playing poker you have to change you mindset for almost every hand that you are dealt.

From the graph alone you are able to see that odds of getting a good hand from the start are are very low. This means you cant just rely on the hand that is dealt but rather on your skills of interpreting the other players, so your going to need to do some bluffing, then you will be able to gain more chips. This proves that when a new element arises you are going to have to adapt and make sure that it will go down in your favor.

Though out this whole clip every robber is shot by a fellow robber, thus teaching us one of the most important points of the game theory and that is to trust someone not because they go along with the plan but it’s in their best interest to.  This rule is demonstrated in all these clips. You shouldn’t ever think that a verbal agreement will be enough. In the business world you should always have a contract or some form of evidence backing you up.

The Game Theory will always be around us and can be applied to any given situation of decision making. Just like Sherlock Homes, you won’t understand where everything in life is going to lead you, but you just need to stay in control of the situation. In his case, he analyses his foes actions, habits and uses deductive reasoning to arrive with a logical motive for their actions, while seeming in control the whole time. You will always be competing in life, but if you interpret your rivals characteristics, find their flaws all while utilizing the Game Theory’s factors then you will be able to gain the upper hand.