“Words are, of course, the most powerful drug used by mankind.”, said Rudyard Kipling. Powerful enough to build up or break down empires, yet game theorists talk about 'cheap talk'. How can the most powerful drug known to mankind be 'cheap'? In game theory, whether words matter depends less on what is said and more on whether it changes what others believe. Cheap talk is a message sent by a player in a game to other players at no cost to themselves, and nothing forces it to b

‘Two wrongs can’t make a right’ is a statement that we always heard of in our day to day life. Well, things get a little complicated when we look at it from the lens of Game Theory. In the arena of Game Theory, two losing strategies that are dependent on each other can surprisingly create a winning strategy when used in a certain combination in longer terms. The concept we are referring to here is Parrondo’s Paradox. Imagine this with a simple example: You are standing at th