Game Theory

Game Theory advocates cooperativity.

A simple concept to grasp, yet a hard concept to materialise in today's world.

For the sake of some people, I shall elaborate this with a small example, not enough to cover the whole theory, but enough for my purpose.

Suppose we have these 2 people who commits a crime together, Let's call them A and B.
If A and B both pleads not guilty, they will both be jailed for 1 year each.
If one (for eg, A) pleads guilty, he will be let off the hook, while his accompolice be sent to 10 years prison.
If both pleads guilty, they will both be sentenced to 20 years in jail.

Of course, this case is not possible in reality, but again, this is
just an extrapolated example.
The best solution for both is actualli to cooperate n just to plead not guilty and be jailed for 1 year.

However,in reality, this is not possible. Humans, with their nature greed, selfishness, distrust for others, and evil minds, will try to undercut the above equilibrium for their own selfish benefits, and also, because they do not trust others will keep their side of the pact. In this case, it is likely that both end up with 20 years, the worst possible case.

In case that is confusing, i give another simpler example.
In this game, a lot of people, about 10 , each gives a positive number ( can be positive fraction too, but not zero) The 10 number are summed up. The winner is the one who gets the closest score to 90% of the average of the total sum.

The winner gets $100, while everyone who loses pay 20 dollars. In the event that there are more than 1 winner, the $100 is split evenly among the winners.

Equilibrium will be established if and only if everyone chooses the same number (everyone will be the closest to 90% of the mean). In this way, everyone will win, gaining $10 per round of the game. However, humans greed will urge them to undercut the mean and upset the balance, in order to earn the full $100 for himself and causing the rest to lose $20 each. This will ultimately result in the mean getting smaller and smaller and everyone losing money in the end.

I was thinking, why are humans so selfish, so greedy,so afraid to trust others, so protective of getting hurt. It is clouding them from the best solution, the best view that will benefit everyone the best. Why is it impossible for people to work hand in hand? Why is it that often, people end up hurting each other?

I have always told and illustrated to others my theory. One chopstick is simple to break; 2 chopsticks together can be broken with minimal effort; 3 chopsticks together requires great effort to break; Whoever tries to break a bunch of 10 chopsticks will end up with a painful hand. Dont touch them!

Once a group of people are united, they have everything to gain and nothing to lose -- provided that no one in the group upsets the balance and betrays everyone else. It may be the fear of betrayal, the lack of trust and faith that human can overcome greed and selfishness that prevents the forging of some of the greatest partnerships in the world.

I have always thought that if we put a group of logical, clear minded people who are not that affected by desires or emotions together, such cooperativity could be seen; as it is already proven with logic that cooperativity works best.

Alas, I forgot one important thing. The statement will only hold true if and only if humans are logical and thinking creatures.