Game Theory Can Bring a Tragic Solution amid Brinkmanship
Brinkmanship is a situation where two parties present extreme demands at the negotiation table that makes it too hard for a consensus to be attained. This state matter exposes each party to a near disaster situation. This state of brinkmanship is caused by a prospective significant economic loss that will interfere with the general well-being of an entity. Also, it could be triggered by a situation where one entity’s political influence is at the point of power loss. To respond to this tricky situation, the affected party tries to escalate the situation to the extreme with the hope that it could regain its initial state or even make it better.
In the recent past, the farmers’ movement in India has been gaining traction as it has mobilized its members to protest against three farm bills that had been passed, which eyed bringing a new agricultural era of efficiency and effectiveness. This would happen through consolidating landholdings, intensive investments in supply chain substructure as well as disintermediating the chain of supply. Contrary, the affluent landowners are not sure whether the new regime is going to benefit them as their prospects are not merely observed through a means of commerce lens. Since the government under the new rules intended to have land being used as collateral for loans, that makes it to be seized from a defaulter, landowners have dissentious views on the laws and are demanding for them to be repealed.
The hot contention between the government and the farmers has got two possible ends if game theory is applied. Firstly, the game theory proposes that the government reaches a consensus with farmers to repeal the laws or secondly, go ahead and frustrate the movement leading to mushrooming of armed resistance. This will be a tragic state for the country.
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