By useless_stark | Game Theory | 6 Jun 2021

Game Theory. Pilot

Alright, this is me first time writing a blog, so do blast on the areas where I can improve.

There are a few reasons why I have taken Game theory as my first article. One of the most convincing reasons being the existence on many shit coins.
Now, I'm not saying shit coins don't have any value, in-fact I believe it's the quiet opposite, shit coins are the ones which are the actual fuels of this
crypto industry. The reason why this speculative bubble won't burst quickly. The day meme trend shifts might be the day crypto bubble bursts (I HAVE NO EVIDENCE TO SUPPORT THIS, CONTINUE READING)

Let's come back to game theory. Since, I am assuming the reader is a newbie, I'll have to explain first what is game theory.
"A game is any interaction between multiple people in which each person's payoff is affected by decisions made by others". Now there's two main branches to it, co-operative and non-cooperative. As the name suggests co-operative game theory *forces every other bastard to co-operate with each other to survive and grow. Consider paris21 as a co-operation game(that's actually the worst example, let's leave it at there), wherein every other member of the UN comes together and takes decisions for the communal growth. And non-cooperative is more or less similar to game of thrones where some bastards are gonna win and some lose.

Now let's dive deep in, one of the most interesting thoughts of this, which is the prisoners dilemma. Consider prisoners dilemma as a game wherein two people rob a bank, and are caught are in the act. Both of them are kept under interrogation separately, if person A confesses and person B doesn't, then person B faces 10 years in prison, if person A confesses and person B also confesses, both of them face 5 years in prison, if both of them don't confess, both of them walk free. Quite interesting, isn't it?

I mean if the other person was my friend, we both could definitely walk free. But, that's the problem, the other person is a professional, why would the other person trust you, so obviously, you choose the safest path for you, which is to confess to the crime. This is where things gets interesting in terms of economics, let's take burger king and McD for example now, if burger king charges you $10 for a whopper, and McD charges you $5 for a big mac(I'm considering both big mac and whopper as an equal entity), McD would get more customers. Now if burger king reduces it's whopper price to $5, both will share equal number of customers.

Suppose, if McD raises the charge up to $15, and looking at this burger king too raise their charge up to $15, both will have equal number of customers, yet their profits also increase. But imagine if any new company comes in providing the same burger as both with a less charge. Ideally, a customer would jump in on that new company, but due to the various reasons like quality, loyalty etc a customer would wait for some time to jump in. But before this happens, both Mcd and burger king devise up new strategies and enjoy the monopoly.

Now, I want you all to use your big brains and research on your own which coins in your opinion play monopoly, and which coins does play a cooperative game. I'm too tired to continue now, Part 2 will be coming soon, since I haven't even got close to what I want to convey, till then, do the usual shiz, follow, like & be generous to buy me a coffee if possible.

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Nerd. Analyst. Philosophy Helps. Blockchain Enthusiast. Lazy.

Game Theory
Game Theory

Abstract of game theory

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