The Cold War and the Prisoner’s Dilemma
During the Cold War, the United States and the Soviet Union armed themselves in preparation for war against each other. Neither side wanted to make the first move but each side continued to arm itself. Eventually the Soviet Union dropped out when it collapsed in 1991. This arms race can be thought of as a game. Each player is self interested and makes decisions so as to better itself. The matrix of this game is that of the Prisoner’s Dilemma.
To be left unarmed while the other is armed is a death sentence as a strike from the other player will be devastating. Both players could choose to be unarmed, but when the opponent is unarmed, it is more profitable to be armed. Thus both players will choose to arm themselves. This is the prisoner’s dilemma in which both prisoners choose to confess against each other.
Many decisions in wartime, or times when war is thought to be close at hand can be understood using game theory.
Source: https://medium.com/intellectually-yours/understanding-the-cold-war-through-game-theory-44b6754266a9