The Art of Strategic Chicken: Real-Life Situations and Game Theory Analyses

Imagine you’re playing a game of chicken, barreling towards your opponent to see who’s gonna swerve first. If both players swerve, they both avoid a crash but lose respect and get humiliated. If one stays but the other swerves, the one who stays wins while the other gets humiliated. But if they both stay, they both crash, resulting in the utter structure. Surprisingly, this game theory happens a lot in real life. Huge companies will play this game of chicken by threatening to walk away from a huge deal, seeing which side is going to concede. Or let’s say your recycling can is overflowing, but neither roommate is willing to take it out. It’ll either overflow or one of you will finally cave in. Or with the Cuban Missile Crisis, where both sides edged to the brink of war, but both swerved at the last second to avoid World War 3. Game theories of science about cooperation. More in this YouTube video here.