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Forum - Appropriate applications of Game Theory vs inappropriate applications

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Agent MattPosted: Jul 22, 2010 - 10:17
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Genuine American Monster

Level: 70
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EDUMACATE ME PLS

I don't want this getting lost in the drama thread.

Continued from here:

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There are some applications of it, and places where it does work. The models are good rough sketches of what should be set up, but they almost always demand serious revision. When we have to deal with the outcomes of human behavior (or state behavior) Game Theory is a pretty good way to put us in the right ball park, but it always demands a much more personalized analysis afterwards. I mean, Game Theory isn't flat out wrong, its just not the most precise tool.

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Kaiser FalknerPosted: Jul 22, 2010 - 10:21
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HAIL HYDRA

Level: 6
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Appropriate applications are mostly in the realm of complete information games. I focus on IR so I'll give you some IR examples.

In cases of nuclear deterence, states know all the outcomes of possible choices and they also know what information is available to the other state. In these cases, game theory works well. Each state knows what the other state knows for this specific crises, and thus a good estimation of what will happen can be made. game theory, in this case, is a good tool for policy makers to put themself in position. Its almost like forcing the game to be played. By laying out the options, plainly, for the other player, you make them more predictable.

The Yom Kippur war, however, is an example of inappropriate application. Since Israel didn't have a total set of information of what Syrian and Egyptian forces were doing, they played the game wrongly. They assumed that the military movements of the other actors would follow the same pattern it had before. They assumed that Egypt and Syria understood that the cost of invasion was too high. This incomplete information game lead to war because Israel played the game wrongly.

There are a lot of micro-economic applications too, but I'm no econ major.

I hope this post is clear. I haven't finished my first cup of coffee yet. :/

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Agent MattPosted: Jul 22, 2010 - 10:23
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Genuine American Monster

Level: 70
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Interesting.

So is the correct application of Game Theory just luck?

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Kaiser FalknerPosted: Jul 22, 2010 - 10:27
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HAIL HYDRA

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Well, chance is definitely governed by variations of game theory. But this is what I mean by game theory being a good estimate, but not precise. The correct application is anytime an actor can be assumed to be reasonably rational and able to understand information. If they don't, we can't predict their behavior. And in IR, nothing is 100% certain, we're just trying to figure out where to play our cards. So would game theory work on a totally psycho-path dictator? Not perfectly, but if you can figure out how he processes information, you can maybe set up a game that will control a situation. The way that game theory works is when relevent information is processed normally. Now, how do you play with someone who has no idea what other actors are doing?

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Agent MattPosted: Jul 22, 2010 - 10:28
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Genuine American Monster

Level: 70
CS Original

"The correct application is anytime an actor can be assumed to be reasonably rational and able to understand information."

That seems like an awful dangerous thing to hinge Game Theory on.

Is it possible that Game Theory simply lucked out when it came to the Cold War? The enemy was coldly rational and devoid of religious fervor.

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Kaiser FalknerPosted: Jul 22, 2010 - 10:33
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HAIL HYDRA

Level: 6
CS Original

In IR anyway. I mean, the stakes are pretty high for sure. And again, in non-Realist IR game theory is only a first step. Most, if not all states, can be assumed to be partially rational. And we can figure out a great majority of what information is available to the relevent actors. But from there, it becomes much more difficult. Again, I don't think Game Theory should ever be the only tool. You're right,if you played the game and only used that, you'd get fucked 80% of the time. At least in the complex games. Things like the prisoner's dillema work a little nicer because 1) there is less relevent information necessary to play the game and 2) there are fewer actors and variables. I'm just tryin to get across (hopefully coherently) that Game Theory is applicable as a good rough sketch but not as a perfect model.

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Kaiser FalknerPosted: Jul 22, 2010 - 10:35
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HAIL HYDRA

Level: 6
CS Original

"Is it possible that Game Theory simply lucked out when it came to the Cold War? The enemy was coldly rational and devoid of religious fervor. "

That's part of why some in the IR field think Realism is a dead field. But even religious beliefs are governed by some logic. Assume you wanted to hold a theocratic state at bay- holding a key religious site well within harms reach is a great way to get the theocratic state to calm down and reevaluate the scenario.

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Agent MattPosted: Jul 22, 2010 - 10:36
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Genuine American Monster

Level: 70
CS Original

No, that makes sense. Perhaps the failures of relying only on Game Theory allows policy makers to treat it with more skepticism.

Clearly, Game Theory is not a zero-sum game like Curtis portrayed it as.

THANK U FOR THE EDUMACATION

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Kaiser FalknerPosted: Jul 22, 2010 - 10:41
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HAIL HYDRA

Level: 6
CS Original

don't you mean Ed-umacation?

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Agent MattPosted: Jul 22, 2010 - 10:42
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Genuine American Monster

Level: 70
CS Original

This thread illustrates that no matter how free information becomes on the Internet, it will never trump academic rigour.

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NanosPosted: Jul 22, 2010 - 11:20
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domokatoPosted: Jul 22, 2010 - 12:04
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Interesting, I didn't know IR was such an in-depth field.

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Kaiser FalknerPosted: Jul 22, 2010 - 12:18
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HAIL HYDRA

Level: 6
CS Original

@ Domokato

IR is way more indepth than I even alluded to above. Its split along many different fields and theoretically approaches as well as many that rely on interdisciplinary information. Its also got its fair share of frustrations in terms of forwarding new approaches. There are some good Intro to IR books out there that give a pretty good overview of the entire field. Personally, I may be headed down a different path than traditional IR, but I've found it interesting so far.

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