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In Managerial Economics, the authors discuss two differenttypes of games: sequential-move games and simultaneous-move games.Sequential-move games mean ”players take turns, and each playerobserves what his or her rival did before having to move” (p.186).You are essentially making moves and decisions based off the otherplayer. Sometimes you are able to predict the outcome by lookingahead to possible moves the other player may make. This is verysimilar to the strategy used in chess or checkers. “Insimultaneous-move games each player decides on her strategy beforeknowing the decisions of other players” (Froeb, McCann, Shor, &Ward, 2016). This strategy is a little more difficult thansequential-move game, but is still doable. The easiest analogy Ican think of is the game of rock, paper, scissors. You have todecide what you are going to play without knowing what youropponent is going to play.

An instance in my life in which I use game theory would haveto be when I am driving in traffic. Traffic is horrible in Houstonand no matter what time of day you can guarantee that you will besitting in traffic for a while. Of course, all the other driversare players in this game with the objective being getting frompoint A to point B in a reasonable amount of time. I can see howdriving in traffic could be either sequential-move game orsimultaneous-move game. If drivers used their blinkers like theyare supposed to then you can figure out which lane you want to stayin or move to. However, we all know that not all drivers use theirblinkers, so sometimes you have to just be on the lookout for otherplayers before making a lane change or staying in a lane and justgoing faster. Of course I drive a lifted 4x4 V8 truck so I use alot of gas, especially driving in the city and sitting in traffic.I have to be able to get to where I am going in a fast time so thatI am not stuck in too much traffic burning up all my fuel. The morefuel I use the more money that is going to have to come out of mypocket when it is time to refuel. Luckily I invested in an EZ tagwhich allows me to take an alternative route that is not as crowdedand cuts my drive time in half and also saves me fuel. Overall,this saves me money not only on gas, but also on money I will haveto spend on any future repairs I may have to make from normal wearand tear. I did not know that I was implementing game theory. Nowwhen I drive anywhere I will know that I am play