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How is Game Theory used in the real world, and what strategies are used? |
How is Game Theory used in the real world, and what strategies are used? Many uses of game theory. Here's an MIT course on it--info is available on the net. Until very recently, a few thousand US troops were stationed directly on the southern boundary of the DMZ between North and South Korea. At first glance, this would seem entirely irrational, as a Northern invasion, consisting as it inevitably would of hundreds of thousands or millions of soldiers, could easily overwhelm and massacre the US force. A deeper analysis shows that the US presence was intended to provide deterrence to such an attack in the first place - if N. Korean forces killed several thousand American troops, a full scale US involvement in resulting North-South conflict would be politically inevitable. In the absence of such a "trip-wire", the North might suspect that, despite its public declarations, the US would not commit to the defense of the South in case of war. A militarily insignificant force was therefore able to provide considerable strategic stability. |
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