Monday, July 18, 2011

Game Theory: Game of Chicken

This classic scene from the film Footloose can be used to illustrate the game of Chicken - a popular example of game theory.

Scene from the 1984 movie "Footloose". Music is "Holding Out for a Hero" by Bonnie Tyler.



"We are both heading for the cliff, who jumps first, is the Chicken".

Chicken game
James Dean and Corey Allen at cliff edge in "Rebel Without A Cause."






In the "chickie run" scene from the film Rebel Without a Cause, this happens when Corey Allen's character cannot escape from the car and dies in the crash. The opposite scenario occurs in Footloose where Ren McCormack (Kevin Bacon) is stuck in his tractor and hence wins the game as he can't play "chicken". The basic game-theoretic formulation of Chicken has no element of variable, potentially catastrophic, risk, and is also the contraction of a dynamic situation into a one-shot interaction.


In a battle of nerve, two cars are accelerating toward each other form opposite ends of the same road. If one of them doesn't swerve, they will crash. How do the actors rationally respond to such a scenario?



In this Harvard Law Today interview, Robert H. Mnookin, author of Bargaining with the Devil: When to Negotiate, When to Fight, answers the question -- should you bargain with people you consider to be unethical, amoral, or otherwise harmful?




The art of doing difficult negotiations during tough economic times is the topic of discussion with Professor Robert H. Mnookin and Paul Solman on PBS News Hour.



http://www.pon.harvard.edu/daily/video-of-professor-mnookins-interview-on-pbs/


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