2 answers

What do you do in Games Theory?

Asked New York, New York

I was told I should take games theory along with business in order to do well in the corporate world, but I don't know what games theory is really about. #business

2 answers

Rachael’s Answer

Updated Oakland, California

Hello!

I studied Game Theory briefly in college as a part of my degree in political science. Game Theory is a decision-making tool that uses models to predict outcomes of certain decisions or behaviors. In politics, it would be things like "What would happen if Country X bombed Country Y?" but in business, it would be a tool to help decide on certain types of investments, new business practices or products. Here is a link with more information: http://levine.sscnet.ucla.edu/general/whatis.htm

Vincent’s Answer

Updated Boston, Massachusetts
Hi, Going along with Rachel's answer above, when making decisions about taking on different investments, projects, or really anything that could have a range of outcomes, you want to explore as many different outcomes as possible prior to taking on the endeavor. Familiarity with game theory will help you more accurately identify potential outcomes for the various situations that could arise around the investment in the future, be them from internal factors or factors external to your firm. Having a more accurate idea of the possible results of these scenarios will help you make better informed decisions, and game theory, if applied properly, can definitely help with this. So, yes, it is beneficial to have familiarity with game theory when going into business, especially if you'll be in a position where you could be involved in investment decisions. You don't need to go out and major in it, but if you have the option to take an elective in it, it would definitely be worth your while. Hope this helps!
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