Why Game Theory is Not About Competition

The video explores economic theory, focusing on the assumption of rational decision-making. It introduces game theory, highlighting its application in economics and beyond. The prisoner's dilemma is used to explain competitive game theory, while cooperative game theory is discussed in the context of trade agreements. The limitations of game theory in real-world scenarios are also addressed, emphasizing the complexity of human decision-making. The video concludes by underscoring the importance of understanding game theory, despite its challenges.

What is the fundamental assumption of economic theory regarding decision-making?

What are the two types of game theory mentioned in the text?

How does cooperative game theory differ from competitive game theory?

Explain the concept of the prisoner's dilemma in the context of game theory.

What is the Nash equilibrium and why is it significant in game theory?

Discuss the implications of game theory on pricing strategies in business.

What role does cooperative game theory play in international trade agreements?

What criticism does Donald Trump face regarding his stance on free trade agreements?

How does the text describe the relationship between game theory and real-world economic decisions?

In what ways can understanding game theory be beneficial in everyday decision-making?