Game theory: when rational choices clash
Game theory, first formalised by von Neumann and Morgenstern in 1944, became the go‑to tool whenever one agent’s best move hinges on what others are expected to do. The framework shows how interdependent expectations can produce outcomes that none of the players intended.
AI-generated discussion · Different perspectives
Take
Because each player optimises against expectations, the equilibrium can leave everyone worse off.
Pushback
Early formulations only applied to zero‑sum games with perfect information.
Reply
Later refinements such as Nash equilibrium expanded the scope dramatically, making the tool useful far beyond those narrow cases.