Entry 16: Game Theory and Chicken

The assumption that people always make rational choices are a bad one because the difference between human and animals and robots is that we humans have feelings and emotions that affect our logic and counters or facilitates our rational mind that is for survival and development purposes. For example, the best thing for me to do might be to have sex and leave because I would still be able to have more offspring if i leave the previous ones and hunt for more female. However, my emotions stop me from doing that because I have a feeling of attachment with the female. This is true in business too, we can't just think of people that does the most for their own interest because people have loyalty, friendship, and emotions involved when they make decisions. As illustrated by the nash equilibrium however, the result dwindles somewhere in the middle of rational and irrational. On one hand the prisoners would not give up on their rights to achieve the least sentence possible but on the other hand they wouldn't work together to achieve the best interest for both. However, in a real case and not a theoretical situation, the prisoners might be friends and they might work together to sacrifice a little for the better of them both. Therefore, bad outcome is not always inevitable and it depends on not only the rational mind but also the sentimental and emotional mind.