Introducing Game Theory: A Graphic Guide (Graphic Guides)

by Ivan Pastine

Evolutionary forces do not necessarily lead to the best outcome for a species. Competition for scarce resources often means that individual benefits and group benefits are in opposition. Whenever this is the case, the species will evolve to maximize individual benefits at the expense of group benefits.

The more people who have the ability to launch a retaliatory strike, the more likely it is to happen. If retaliation is likely, then there will be no attack in the first place.

Nobel Prize in Economics in 1972 for a mathematical result known as “Arrow’s Impossibility Theorem”. It shows that, for groups which are not run by a dictator, there will always be the possibility of some situations where group preferences are non-transitive, where we reject a choice that may be better for everybody or where irrelevant options change our choice. These problems are inherent in group decision making.