3 game theory tactics, explained

The sunk cost fallacy also applies to relationships.

"Minimizing your maximum loss" As a trader, these are the most important words when dealing with risk management.

I think a more detailed video would be marvelous. Because what was just here assumes that at least one of the opponents is minimizing the maximum loss. However, what if the opponent's intention is not to win or not to minimize the losses. I know the theory is more detailed than that. This is why I am recommending a detailed video. Thanks for the ideas you bring to the table.

That sunk cost fallacy hits hard...

But that’s just a theory, a GAME THEORY!

Very nicely narrated and scripted. Amazing and Quite Informative video ❤

To summarize : 1. What can we do that would result in more benefits and less drawbacks of the both parties? 2. If you are sure that putting your money from now on in the current hand (poker example) will result in more loss, you should stop playing. This is Sunk Cost Fallacy. 3. Third one works when you are competing against a strong opponent. What can you do which can minimize your maximum loss. This is called Minimax.

Can we just take a moment to acknowledge how Big Thinks always brings us high quality videos?

Great vid. It’s also interesting how it works with multiple parties involved since the higher number involved the chances of lower cooperation. For example with OPEC (13 oil country exporters) where they have guidelines annually to produce a certain amount of oil in order to maintain a certain price. Though most of the countries, if not all, produce a slightly higher amount than agreed upon to minimize damages in case the other members decide to produce over the agreed upon amount. Game theory in general is complex and can be probably be discussed about in depth for hours.

The tic-tac-toe example of the Minimax strategy would be better suited if the end game was a tie, I think. Because right now it doesn't look like minimizing losses, but maximizing winning lol.

Short, detailed to the point and incredibly beneficial Good stuff

Missed this episode. Thanks for uploading!

I love this channel! You all are the best.

I used to think that I am ultra defensive,but now I know I have been following minimax strategy, unknowingly though.

I would add on to the looking for a win/win between 2 parties to include a 3rd party. There is always a 3rd party, or more that will be effected by this decision. This certainly adds more complexity to a negotiation, but if done so, you could come out with a better agreement that benefits even more parties. This might mean you might be taking home 'less' out of a deal. But this is best for everyone and you should see that as being part of the reward as well.

game theory is the most interesting concept in microeconomics in my opinion

I’m an attorney. The minny-max strategy is something litigators always do.

thanks.. how does this apply to stock market trading? trading is a game involves multiple players all wanted to win at any point in time within a day on a particular stock/few stocks. means what is the strategic moves to win? cut losses sure, but still losses. to win, how to win using game theory mindset?

3 game theory 1. In zero-sum game. You should lose nothing but maybe you can achieve something. Minize losses. 2. You should think it is okay to get out something that you been working so long. Because when you keep working on in, maybe you will be loss more than before. 3. In such moment, think what the best way is to get out from the problem and win.

Appear strong when your weak,appear weak when your strong ~Poker zu