Game Theory is the study of how to play "optimally"
- You discover your best strategy, the opponent learns and adapts, you adapt as a result of that adaptation, and so on.
Are you playing a co-operative game or a non-cooperative game? This is a question you have to ask when assessing whether or not game-theory apply
- ex. should I change lanes in slow traffic?
Game theory becomes a concern when we consider whether or not our strategy would be changed if we knew that the other party were trying to predict what we were going to do, and devise their strategy to better combat our strategy.
there are general rules to the game, but each individual has his own set of rules. This is what makes it a dilemma.