I discussed recently dating from the point of view of market strategy, and also pointed out the link, where the game theory was applied to the same model. These things are more than a joke: once upon a time the game theory was deciding the fate of the World: it was behind the American (and perhaps also Soviet) strategy during the Cold War era.
This article discusses how game theory led to the Cold War episode, known as "Operation Gian Lance":
"Nixon's madman pose and Giant Lance were based on game theory, a branch of mathematics that uses simple calculations and rigorous logic to help understand how people make choices — like whether to surge ahead in traffic or whether to respond to a military provocation with a strike of one's own. The most famous example in the field is the Prisoner's Dilemma: If two criminal suspects are held in separate cells, should they keep mum or rat each other out? (Answer: They should keep quiet, but as self-interested actors, what they will do is betray each other and both go to jail.) In the Cold War, the "games" were much more complicated simulations of war and bargaining: Would the Soviets be more likely to attack Western Europe if we kept missiles there or if we didn't?
Kissinger had studied game theory as a young academic and strategic theorist at Harvard. In the early '60s, he was part of a group of World War II veterans who became the oracles or "whiz kids" of the nuclear age. Working at newly formed institutes and think tanks, like the RAND Corporation, they preached that the proper way to deal with the existence of nuclear weapons wasn't to act as if the situation was so grave that one couldn't even discuss using them; it was to figure out how to use them most effectively. This was the attitude mocked by Stanley Kubrik in Dr. Strangelove, in which RAND appears thinly disguised as the Bland Corporation."
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