Finance & Economics (Part 2) Game Theory and Theory of Mind with Noah Healy

Noah discusses game theory and theory of mind in economics and history - In this episode, we're continuing our history of finance and money discussion with Noah Healy. We'll discuss game theory and theory of mind, two critical topics in economics.

If you're interested in learning more about economics, listen to this episode! We'll discuss key concepts in game theory and theory of mind and how they play a role in economics. By the end of this part 2, you'll better understand how finance and money work and what factors affect economic decisions.

The theory of mind is a way to understand how people think. It's based on the idea that each person has an inner world of thoughts, feelings, and desires that influences their behavior but that they try to keep hidden from others. In game theory, this concept can be applied to situations where multiple players make decisions based on what the other players do.
 
In economics, the theory of mind helps us understand why people make confident choices about saving money or spending it on something fun. It also helps us predict how people will act in different situations depending on their goals.
 
For example, if someone has just lost their job, we expect them to be worried about making ends meet, so they would probably try to save money by cutting back on non-essential expenses. However, if someone just got a raise at work, we would expect them to be excited and want to celebrate by treating themselves.
 
Understanding how people thought at different points can give us clues about what was necessary or not vital to them at that moment in history, depending on when and where we look. For example, if we look at what happened during World War II, many people were worried about being safe from attack because countries were starting to go to war. 

Still, let's look at what happened during the times leading up to WW2. We see that people were more concerned about political ideologies than anything else because those ideologies were starting to cause disagreements among some countries. This tells us that those ideologies weren't so important because no one wanted a war with their neighbors who shared similar views.

Be a guest https://forms.gle/R18AqDg1E6pv4M2Z7
Connect with me at https://linktr.ee/gregwsheldon