Tag: Game Theory

Looking at Conflict with Game Theory

Game Theory pic
Game Theory
Image: nobelprize.org

Dr. Antonios (Tony) Antoniou is an expert in business and finance and achieved recognition in Jean I. Heck and Philip L. Cooley’s study, “Most Prolific Authors in the Finance Literature: 1959 – 2008.” Amid Dr. Antonios Antoniou’s research interests is the question of how economics can be used in conflict resolution.

In 2005, Robert J. Aumann and Thomas C. Schelling won the Nobel Prize in Economic Sciences when they used economic game theory to study conflicts such as wars, wage negotiations, trade, and even organized crime.

Game theory, which is sometimes called interactive decision theory, explores how agents in conflict make decisions when their choices are interdependent, and predicts actions based on what each agent believes the other agent will do.

Schelling’s book, The Strategy of Conflict, proposed game theory as an effective way to understand conflict in the context of the nuclear arms race in the late 1950s. Aumann later built on Schelling’s ideas to explore what game theory can reveal about longer term relations. Game theory has become a dominant strategy for understanding and predicting conflict in a range of contexts.