Some Realities of Game Theory

Game theory is not perfected by any means but that doesn’t make it a useless tool. Game theory is mathematically and logically based so naturally it is heavily used in economics. A man named Bruce Bueno de Mesquita from New York University has made some impressive predictions with his use of game theory recently. He predicted the fall of Egypt’s president, Hosni Mubarak, and that President Musharraf of Pakistan would leave office by the end of summer. And since then he has consulted for many other companies and agencies aiding in their forecasting department. His secret he says is game theory software. Mr. Bueno goes on to explain that game theory is very useful but at the same time very time consuming and meticulous. Data needs to be gathered on all decisions that have to be made and all players in the game. This is usually done by hours of interviewing with players in whatever game. Say it is political or maybe science exploration; like whether or not to drill for natural gas. A Dutch consulting company runs software called DCSim and charges 28,000 to 100,000 American dollars to run any type of simulation for a law firm or a government body, which is what their clients mostly consist of. Game theorists are trying to be very optimistic. They believe that one day the software could be used to resolve a war before it happened. Imagine if you could run a simulation that would be able to save thousands of lives and millions of dollars, wouldn’t you pay for it? Game theory is not quite that advanced yet but a lot of progression has come in the last few years. Whose to say that predicting the end to a war wont be possible in the next few years.

For more information visit the link below.
http://www.economist.com/node/21527025

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