Game Theory In Our Daily Theory:

In our daily life, we can always observe some phenomena of competition. For example: Playing Poker, Playing Chess and most sports events. In each competition, all players try their best to defeat their opponents because only one people can win the champion. It may be ruthless, but in my opinion proper competition will encourage us to make progress. The nature of competition is a game and how to win the game is what we concern. So how to adopt the most reasonable or favorable strategy to make ourselves probably win or at least not losing so much is what Game Theory tell us. We will begin with an old Chinese problem: Tian Ji Racing to introduce some simple and understandable mathematical ideas in Game Theory, which can help us make wise decisions in a game. The mathematical ideas are involved in three typical and practical examples in our daily life: Prisoners ’ Dilemma, Penalty Kick and Auctions. In terms of the analysis of these examples, we can easily understand the significant role of mathematical way of thinking played in Game Theory