Question

When two people are trying to make a deal -- whether they’re competing or cooperating -- what’s really going on inside their brains? Behavioral economist Colin Camerer shows research that reveals how badly we predict what others are thinking. Bonus: He presents an unexpected study that shows chimpanzees might just be better at it.?

Answer 1

when two people are trying to make a deal , various factors like cooperation, compitition, bargaining are influencing the mind of these people, game of hide and seek and poker.the product that you would like to sell is not much availble in market, then you do not want to sell early because of missing profit.but when everyone sell the product in market, then people also do not late to sell it for trigeering the crush.so there will be little bit compitition but not to far ahead.there are two different theories which helps to understand what people thinks or going on the brain .one is cognitive hierchy theory and equablirium analysis. in using game theory, lot of people say they do not know what by people are going to ,pick.they are not being really strategic at all.when they will pick two third of 50, that is 33.that is a start.O.in cognitive hierchy theory, it indicates a kind of heirarchy along with some assumption how many people stops at different steps and these steps of thinking are affected by lots of intersting variable and varient people.in another theory eqablirium analysis, an equablirium is mathamatical state in which every body has figured out exactly what everyone else do.it is usefull concept but behaviourlly it may not explain what people actually do in playing such type economics game.in this case equablirium make bold prediction.everyone wants to be below everyone else.therefore they will play zero.where are these things happening in the brain,one study corecelli give interesting answer, where they people had play this game, while they are scanned by FMRI and two condition some trials they are told people are playing with another person who playing right now and we are going to match up behaviour at the end. in other trail, just play the computer and choosing randomly,, so what you seen is substraction and area which more brain activity when playing people comapre to playing computer.

human being share 98.5% genes with chimpanzees.how chimpanzee and human behave differently might tell us lots of revoulation.so this is amazing ,meomory test from nagoya japan.a trained chimpanzee correctly doing sqaure solve by training. not only they do very well but also they do in sort of lazy way.chimpanzee are most faster and stronger and more statute obessed.they can preserve brain acetivities and practice them in development which really important to them to negotiate status and win. which is something like strategic thinking during compitition.chimpanzee playing actual game by touching two touch screen which is chimpanzee actuall interacting with computer.they press left and right.one chimp is called matcher.chimpanzee palying game better than human.they replicate quite nicely.people seemed to limited strategic thinking using theory of mind.people only do one or two step of strateguc thinking but chimpanzee have good strategic thinking and think diversified way.so chimpanzee is bettter compittitor than human as judged by the game theory.