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Salami and Game Theory

As discussed in class, Game Theory looks at how parties use strategies and reasoning to make strategic decisions. This can be in games, every day decisions or in this case, politics. The salami that will be discussed in this blog post is not going to be about the consumption of this deli meat, but more about the metaphor that comes with the action of slicing salami to serve. Presh Talwalkar calls Salami tactics or Salami Slicing, a way to “get anything you want, one piece at a time.” Basically, this tactic entails slicing a large goal into tiny slices. In the case of politics this means one will continue to approach the enemy piece at a time, careful to stay not aggravate the enemy and evoke a response. 

 

To illustrate how this works in a real life example, I will be using examples that Presh Talwalkar illustrates. When entering a butcher shop, it is hard to immediately ask for a pound of free Salami. On the other hand, if you start by asking for just a slice to sample, the butcher will not think too much of it. After all, it’s just a slice. If you return the next day and ask for 2, the butcher will again, probably think of it as not much. It isn’t much more than what you asked for the previous day. And slowly on the nth day you can ask for n slices eventually getting to a pound! Why does this tactic work so well? Both parties are in Nash Equilibrium! Party A is very obviously gaining Salami. And given this decision of Party A, the best decision Party B can make. As Presh Talwalkar explains that Party B will not see the entire picture, and is afraid to reject Party A and walk away as they feel committed and want to reach an agreement. The other choice would be to approach the customer, but that would risk losing this customer and their reputation. 

 

Now let’s look at what in the context outside the butcher shop and in politics. In politics, Salami Slicing entails one party will constantly be slightly disadvantaged over a long period of time, as the other party continues to slowly approach and gain an advantage. In the article linked below, Peter Coy explains that China has been slowly inching towards Taiwan, extending its reach and encroaching on the coasts of Taiwan and borders of India. China is careful to approach slowly enough to stay below a threshold that will make Taiwan and India retaliate. China is gaining more reach in its power, and at the same time given China’s decisions, it is best for Taiwan and India to let them take tiny slivers of their borders. They would not want to put in a great amount of money and resources to enter war over a meter of their coast. 

Sources:

What Game Theory Says About China’s Strategy

Salami tactics: how to get anything you want, one piece at a time

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