Game Theory

interests. Numerical values are placed on the goals, motivations, and influence of players, and likely options are considered. Game theory software then evaluates the ability of each of those players to influence others, and hence predicts the course of events. B Although many individuals would feel uncomfortable having a computer make decisions for them, many organizations run such computer simulations for law firms, companies, and governments. But feeding software with accurate data on all the players involved is especially tricky for political matters. Reinier van Oosten of Decide, a Dutch firm that models political negotiations, notes that predictions may become unreliable when people unexpectedly give in to 'non-rational' emotions such as hatred, rather than pursuing what is apparently in their best interests. However, sorting out people's motivations is much easier when making money is the main object. Accordingly, modeling behavior using game theory is proving especially useful when applied to economics.