Application of Game Theory

Game theory can be applied in various areas. One of the major areas that game theories are applied is international relations. Game theory can be applied from trading policies to actual conflicts (wars). Some might already be aware of the fact that game theory played a major role during the cold war. Although game theory is most known for its usage in wars, it can also be applied in various sub-categories within international relations. Although we might be oblivious to ts application in international relationships as normal civilians, it would be reasonable to say that game theories are used in all aspects of international relations.
Another area where game theories are applied is business deals. In a competitive society we live in today, it is extremely important to maximize the corporation’s gain through investments. By carefully planning out their actions and predicting others’ actions in advance, it will be able to search for the best deal out there. Moreover, precise usage of game theory will enable the company to reach a resolution they want with other corporations.
Now, you might wonder, what benefits does game theories bring, especially in international relationships? As I have mentioned in my previous posts, game theory is all about strategy making. By predicting the opponent’s actions, we are able to recognize the conflict before and either attempt to avoid or to have a resolution to it. This benefit is very significant especially in relationships between countries or corporations.

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