Inside the ransom business – why kidnapping rarely pays
https://theconversation.com/inside-the-ransom-business-why-kidnapping-rarely-pays-110678
In class we discussed dominant strategies in a game. Specifically, we talked about how each player tries to maximize his own payoff, while considering what the other player may do. This concept was clearly presented in the Prisoner’s Dilemma example where each prisoner tried to maximize their own payoff. This concept has interesting applications in real life where two parties are pitched against each other. This article relates game theory and dominant strategies to the scenario of kidnapping and ransom negotiation. The kidnappers release hostages when the cost of keeping them is greater than the ransom reward, but the question lies in finding out where this point occurs in negotiation.
When people are asked what the right price is to get a loved one back, answers range significantly from “I would never pay a criminal or terrorist” to “I’d pay whatever they’re asking for” or “everything I could possibly spare”. This wide range of responses begs the question of what is the most strategic way to negotiate. In the article, the author considers the factors of what each player could say, and the respective best responses. He found that depending on how the victim responds to a kidnapper’s demand, the kidnapper will either ask for more money or lower the ransom. As a result, the best response for the victim is to not agree immediately. This result has interesting effects in the kidnapping market because it ensures that kidnapping is not an easy way to riches.