Topic 16: Game Theory and Chicken

Game theory assumes that people make rational decisions. I think this assumption is valid because no matter what you will make the decision that benefit you the most, even you know other one is going to choose to silence, you will want to be free and choose to confess other people's crime. If you know the other one is going to confess, you still confess too to 
I think the bad outcome might not be always inevitable because after thinking though people maybe able to cooperate and trust each other on the issue. For example: If everyone choose to chase other girls instead of the blond, everyone gets a girl. Although they didn't maximized their self-interest, but they are getting result they would have get. The better outcome that Nash says in the video is that all guys don't chase that blond instead they chase four other girls, so that they won't get in each other's way and they don't insult the other girls. If they all go for the blond, blond will reject them and rest of the girl will reject them too. Adam Smith's invisible hands won't work if the situation is prisoner's dilemma.