3 Game Theory Tactics
That Will Change How You Make Decisions
You’re in a high-stakes poker game. Half your chips are in the pot. Your opponent stares you down. Unreadable.
Your hand probably sucks, but if you fold now, all that money is gone.
What do you do?
This isn’t just a poker problem. It’s a life problem. You’re constantly playing games of strategy.
And most engineers play them wrong.
Here’s how to play smarter:
1. Break Big Problems Into Small Wins
The Cold War. Two superpowers. Enough nukes to destroy the planet 100 times over. And here’s the problem:
Neither side trusts the other to disarm first. A standoff.
So how did they fix it? Step by step. Instead of demanding massive disarmament, they agreed to destroy a few weapons at a time. Trust was built. Disaster avoided.
How this applies to you:
Codebase a mess? Fix one function at a time.
Overwhelmed at work? Knock out the smallest task first.
Scared to negotiate? Get small agreements before the big ask.
Break the game into winnable moves. That’s how you win.
2. The Sunk Cost Fallacy
You’ve spent weeks building a feature. It’s not working. You know it. But stopping now? Feels like throwing all that effort away.
That’s the sunk cost fallacy.
Poker players do this all the time. They throw more chips into a bad hand because they’ve already bet so much. And then? They lose even more.
How to avoid it:
Bad code? If debugging takes longer than rewriting, start fresh.
Stuck in a job you hate? Don’t stay just because you’ve been there for years.
Reading a book that’s boring you to death? Close it. Move on.
The past is gone. The only thing that matters is what’s best now.
3. Minimax: Avoid Worst-Case Scenarios
You’re pushing a massive release. It’s Friday. The pressure is on. But if this deploy goes wrong, your weekend is toast.
What’s the best move?
Game theory says: Minimize your maximum loss.
Instead of taking big, risky bets, play defensively to protect yourself from disaster.
Releasing a big update? Roll it out in stages, not all at once.
Job hunting? Don’t rely on one offer - always have a backup.
Building a startup? Test the market before burning months on a full build.
Play defense first. Then go for the win.
Are You Playing It Right?
Every choice you make is a move in a bigger game. Most of us play it blind.
You can keep reacting… or start playing with intention.
As Warren Buffett said:
"The most important thing to do if you find yourself in a hole is to stop digging."
Fold when you need to. Bet when the odds are right. Play smart.