The Cuban Missile Crisis is frequently cited as an example of the use of Game Theory.
I am talking about the situation confronting the Kennedy government when they found that the USSR had installed missiles in Cuba that were capable of hitting American cities with nuclear weapons.
Here is a link to a summary of the crisis, if you are not familiar with it.
Here is a different link about Game Theory and the Cuban crisis.
I see this as an excellent example, not only of Game Theory, but about risk management.
Game Theory is not limited to international crises.
I think there are situations in today’s business world that could benefit from similar thinking.
For example, take these situations:
- You want to increase your market share and one approach is to lower prices. But how will your competitors respond? Will this lead to a price war? Will
