Economics Game Theory Questions
Brinkmanship in game theory refers to a strategy where a player pushes a situation to the brink of disaster or conflict in order to gain an advantage over the other players. It involves taking actions that are risky and potentially harmful, with the intention of forcing the opponent to back down or make concessions. The player engaging in brinkmanship aims to create a credible threat that they are willing to take extreme measures, even if it means causing harm to themselves, in order to achieve their desired outcome. This strategy relies on the belief that the opponent will be rational and choose to avoid the potential negative consequences by giving in to the demands of the brinkmanship player.