In East African cities, another example of game theory is visible every day: the traffic light. If everybody obeyed the lights, traffic would flow smoothly. But if one individual has the opportunity to run a light which turned red a few seconds ago, that person will certainly do so. It saves the perpetrator five minutes of waiting. Bigger-picture, man-years are squandered daily.
Back when I was taking minibus taxis in Kampala, I would often ask myself why we do not have the same issue back home. I am guessing some main reasons are that our red lights are shorter, our traffic monitoring is better, our lights are synchronized, and we have some degree of confidence in the system as a whole. There may be other reasons.
Traffic is only a metaphor. Game theory appears everywhere. Consider the inputs and outputs surrounding violence. Joseph Kony, leader of Uganda's Lord's Resistance Army, is paid a massive salary by Western governments. His job is to not slaughter innocent people. Previously, his employer and lucrative employment were the complete opposite (with extra loot from massacres). Armed rebellion is a plausible get-rich-quick scheme.
As for getting rich the slow way: this is far less straightforward. When I buy water through a bus window, my vendor earns a few shillings. If his friends are unlucky, he is morally obliged to share his profits. Therefore, game theory suggests (and reality confirms) that he has little incentive to work hard. Ironically, the capitalist principles of game theory predict dysfunctional communism.
After returning from Uganda, I noticed similar peculiarities in Canada. The differences are the rules and the stakes. Running a red light results in a hefty fee. A murderous rampage results in prison, with a decrease in standard of living. It seems we have solved everything. But the rich still get richer and the poor still get poorer: the negative outcomes game theory prophesies.
From the perspective of game theory, the world's current problems are inevitable. Everyone wants to maximize family, peace, money, security, fun, sense of worth, and sex. Everyone wants to minimize crime, bribery, extortion, loneliness, discomfort, and traffic. Will people work together to achieve their potential? Remember, the real-life Prisoners' Dilemma has a twist: in the game of life, losing is not an option.