THE GAME THEORY : Science of Social Life

Reading Time: 5 minutes

This Wednesday, 31 October 2018 CEV organized a mind-opening talk on “GAME THEORY”, By Amandeep Tiwari Sir.

So let’s begin an overview of discussion by first considering readers who heard word “game theory” for the first time. If I go with definition it goes like this :

THE GAME THEORY : Science of Social Life

Game theory is the study of mathematical models of strategic interaction between rational decision-makers. It has applications in social science, logic making, computer science, etc. (Wikipedia) Formulated by a mathematician named John Nash. There is also one movie on him: “The Beautiful Mind”, a worth watching one.

Let’s analyze an event of cold war, the Cuban Missile Crisis, which was on verge of starting Nuclear War in the world –

THE GAME THEORY : Science of Social Life

THE CUBAN MISSILE CRISIS: also called the October Crisis, this event took place in the year 1962, it was a 13 day long (October 16-28 ) face-off between the greatest superpowers the United States of America and the Soviet Union. The conflict’s chronological order was as follows :

  1. America deployed ballistic missile in Italy and Turkey.
  2. In concern to that Soviet Union leader Nikita Khrushchev agreed with Fidel Castro to deployed their nuclear missile in Cuban Island, very close to America, to neutralize future invasion by America.
  3. the US established a naval blockade on October 22, 1962, to prevent more missiles from reaching Cuba, and also asked for returning or dismantling missile already there.
  4. The diplomats between the United States and the Soviet Union pointed out the necessity of a quick, clear, and a direct communication line between Washington and Moscow.
  5.  Finally, an agreement was reached between US president John F. Kennedy and Khrushchev.
  6.  Soviets agreed to dismantle weapons subject to the US avoid invading Cuba again and dismantle all US-built missiles deployed in Turkey and Italy.

So, if we obtain a payoff matrix for the situation, it will be like –

THE GAME THEORY : Science of Social Life

What finally happened was 0,0, thank god it wasn’t -100,-100, else Earth had been turned inhabitable. These type of solutions are called socially optimal solutions (S.O.S).

U might have got glimpses of how extreme diplomatic issues can also be solved by the aid of simple payoff matrix.

Let’s go more relevant to you –


Probably all of you must have noticed that shops selling same products cluster together, like all in series (electrical people, cheers! 😂😂)


If they have spread throughout the community they would have faced much less competition, but they also lose something. There are many advantages of Clustering. Very first is they are likely to learn from each other, to keep the competition tough there would be a mutual growth of all parties involved. Despite a slight increase in competition, efforts of all the partners are pooled unknowingly to add more new customers as service quality increases. Shops are more vulnerable to failure if located far from competitors.

This is how business flourishes.

You can also refer this :


Have you noticed that most of the time small political parties form a coalition with a group of other small parties, not with a big party?

Consider this situation :

  1. There are four parties namely A, B, C, and D.
  2. A has 45% seats, B has 25%, C has 15% and D also has 15%.
  3. Now CM is made by the party who has more than 50% seats.
  4. If you are A than it would be quite easy for you to select any one, but if you are either B, C or D then what would you do.
  5. In the first case, suppose you are B, and in second case you are C or D. Following is payoff matrix of representation of your party in assembly formed :

THE GAME THEORY : Science of Social Life

So you can clearly see if B goes with A then majority power will be in hand of leaders of A, whereas power coalition with smaller parties led to a distribution of power as well as the percentage of B also increases.

If you are C or D then also coalition with A will only make you a yes-man, whereas coalition with smaller one can increase your % as well as remaining power also get distributed between rest of two.

Though being the biggest party in Karnataka, BJP was not able to form a coalition. The smaller parties Janata Dal (Secular) and Indian National Congress led to a coalition government. H.D. Kumaraswamy of the Janata Dal (Secular) is the current chief minister of Karnataka, he was elected on May 23, 2018.

CONCLUSION: So we can conclude that any social interaction of ourselves with others are of two types: either it would be cooperative or non-cooperative.

When you are competing and have no mutual trust with others it would be better if you take such decisions which benefits you irrespective of what others decide to do.

Whereas in a cooperative environment where everyone shares a common goal, there must be a fair division of profit, means the party who contribute more should receive more, this should be taken care.

So you just have instilled in you one more dimension to your vision, this would surely help to tackle many problems in future rationally and come up with SOS.

In the end, I would like to apologize if I couldn’t make you understand what exactly game theory is, hence a video suggestion for reference.

Below is the original presentation file of the talk in pdf format.

A huge thanks for your time and patience!





Probability Theory : A short story

Reading Time: < 1 minute

Probability theory is probably the least understood area by the general population (except for certain gamblers). As a simple example, consider the History professor who was scared of flying and asked his friend one day: “What is the probability that there will be a bomb on an aeroplane?” His friend responded that he really didn’t know, but that it was certainly less than one in a million. So he asked: “Well, what is the probability that there are two bombs on an aeroplane?” His friend responded that (as long as these were independent events) it would be the square of the probability of having one bomb, which is 1 in a trillion – a truly astronomical number. So, from that day forward the History professor always carried a bomb with him when he flew since it reduced the risk of having a bomb on the plane from 1 in a million to 1 in a trillion.

CEV - Handout