Game theory is a field of scientific modelling that is most often employed, in simple situations, when the optimal choices of one player depend on the optimal choices of another player. More complex game theory models are described as dynamic and not only take into account the optimal choices of the players but also their respective conditions. A simple game theory model that describes interactions between two players is prisoner’s dilemma. The classic prisoner’s dilemma example involves two prisoners who are under interrogation and have two choices: to cooperate with one another, or to defect and betray on another. This leads to a payoff matrix as follows:
Thus, in a one-off interaction, the optimal strategy is always to defect, as either you go free or you get a 5 year sentence. Whereas, if you were to cooperate you would either get a 1 year sentence or a 10 year sentence, both of which are worse payoffs than the defecting payoffs. However, over many interactions, cooperation is the best strategy as it has the best average payoff. This model is often used in economics. However, it can also be used in animal behaviour in determining the nature of short-term and long-term group interactions and the development of altruism in a species.
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