Question

In your everyday life, you make strategic decisions. Using the game theory concept, explain one of these decisions.

Answer 1

Suppose there exists a couple who has different interests and the events they prefer lie on the same day and same time such that only one of them could be attended, ie a choice we come across almost everyday . so there occurs a tradeoff as to what would be the best option to do given the interests of both the people.

game theory explains one such dilemma in form of battle of sexes, where a man and a woman want to spend tiem together but have different interests. so suppose the man wants to watch a football match and the woman wants to attend ballet , there occurs a tradeoff. both of them want to spend timr together but both dont have the same interests.

so there exists 4 cases

case 1

when both of them decide to watch the football match. so though the woman gets to spend time with her husband , her utility or payoff is not maximum since she wnated to attend a ballet performance. but due to tradeoff , she watches the football match. the man has the maximum utility since he gets to spend the time with his wife and also gets to attend the event he is interested in.

case 2

when both of them decide to attend the ballet.

in this case the woman has the maximum utility since she gets to spend time with her husband and attends what she is interested in . but the man chooses to spend time with his wife though attending ballet is not in his lists of interests.

case 3

the next case is when both of them choose to attend the events they are interested in leaving the choice of attending it together. so they prefer to attend the events alone , in which both of them forgo each others company . since the main purpose was to spend time with each other , there payoffs are furthur less than the ones where they attended the events together.

case 4

this case is almost non existent. here both of them attend the event the other one prefers and that too alone

since both of them neither get the interest nor the company , there payoff woyld be 0 or even negative in such a case

following is the table explaining the payoffs of 4 cases

man

woman

	ballet	football
ballet	6,3	2,2
football	0,0	3,6

this table shows the payoff for the foru cases discussed above.