The Draft Copy of My Theory of Everything

The following are three broad concepts that I have been toying for some time now and I think it’s just timely to combine them into a bigger piece of framework:

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What is 90% tit-for-tat?

We talked about game theory and the prisoner’s dilemma in the previous post (Click here for Part 1: Game theory in 5 minutes). The implication is real and thus it is vital that we understand the best approach to adopt in such situations

Recall that the problem with the prisoner’s dilemma is that one’s action is dependent on the other party’s action. Obviously the problem is we don’t know what’s the other person’s action is going to be! If only!

There are 2 distinctive scenarios here:

  1. one off circumstances
  2. repeated circumstances

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Game theory in 5 minutes

The prisoner’s dilemma is a fundamental problem in game theory that demonstrates why two people might not cooperate even if it is in both their best interests to do so

Why? Refer to the following payoff table (scale of 1-5, with 5 being the highest)

  1. Both cooperate – 3 points each
  2. One party cooperates and the other party defects
  • the one who defects = 5 points (reason: taking advantage of the one who cooperates)
  • the one who cooperates = 0 point (reason: being taken advantage of)

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