It sounds vicious on your part, but other people may press their buttons, too, and every time they do, you lose $2 along with everybody else. When you push your button, the first thing it does is to take $2 away from every other player, and just like that, everyone else is down to $98. This is a transcript from the video series Games People Play: Game Theory in Life, Business, and Beyond. If nobody’s actions affected anyone else, it wouldn’t be a game because games are interactive. What does it do? Pushing this button has two effects: one that affects you and one that affects everybody else. But you don’t know enough yet to know whether to push. If you’re a rational player, you’re going to try to adopt the strategy that will maximize your expected payoff given what you know-or think you know-about the other players in the game. In every game, every player has a strategy.
A rational player will try to adopt the strategy that will maximize the expected payoff given what they know or think they know about the other players in the game.
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