Payoff Matrices: How to visualize any two-player game
If you want to master game theory, you need to master payoff matrices. They’re the single most important tool for analyzing two-player games, and once you understand them, you’ll see strategic situations everywhere. A payoff matrix is simply a table that shows every possible outcome of a game and what each player gets in each scenario. But this simple visualization unlocks powerful insights about human behavior, business strategy, and why rational people sometimes make seemingly irrational choices. ...