Games Are Everywhere

Game Theory · Axiom Academy

Discover how game theory helps us understand strategic decisions in everyday life. What Makes Something a "Game"? In game theory, a "game" is any situation where your best choice depends on what others choose. Click on scenarios below to explore which ones are strategic games. You run a coffee shop. Your competitor across the street is deciding whether to have a sale. Should you lower your prices too? Click each option to see the outcome. Click each domain to see how game theory applies. The more you explore, the more you'll see strategic thinking everywhere. Once you see the world through a game-theoretic lens, you'll make smarter strategic choices. You'll anticipate how others will respond to your actions and find optimal strategies. Game theory provides tools to predict what will happen in strategic situations. From market competition to international relations, these mathematical models reveal likely equilibria. Understanding strategic incentives helps design better institutions - from voting systems to markets to online platforms. Mechanism design is game theory in reverse: engineering rules to produce desired outcomes.

This is the written version of the interactive lesson above. See the full Game Theory course.