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Game Theory: More Applicable Than You May Think

This past summer, I traveled to London to take a course called “Bargaining and Negotiations: Interests, Information, Strategy and Power.” Since my introduction to the topic, I have been more aware of tactics I can use to pull a negotiation in a certain direction. I realize now that all of the mental calculations and strategizing I have been doing were simply to find an optimal strategy for myself while taking into consideration the other party’s actions: game theory.

The presence of game theory in the art of negotiation is so prevalent that many times, negotiators are not aware that their thought processes involve basic game theory. For example, the article mentions how during Super Bowl XLIX, the Seattle Seahawks coach, Pete Carroll, chose to pass to attempt a touchdown instead of running because he was making a decision based on the other team’s logical reasoning. If Carroll would have chosen to run, as he usually does, the other team, knowing Carroll’s basic strategy, would strengthen their defense line. Thus, Carroll chose to run the play. While this example is not a traditional negotiation, it still is a different form of negotiation. The coaches are the brains that formulate strategies for their teams, the negotiating parties, to execute. What I took away from the article was that game theory is applicable to a wide gamut of disciplines, as I realized that it was applicable even to negotiations. This just goes to show that a strong understanding of game theory is a powerful tool that can be applied to any area of study or activity.

 

Source: http://www.thelegalintelligencer.com/id=1202738825434/The-Benefits-of-Game-Theory-in-Negotiations-and-Mediations?mcode=1395262324557&curindex=90&slreturn=20150920223327

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