The telecom war between Reliance Jio and Airtel was only a preamble to the impending battle between Google and Jio. Nitish Kumar broke the mahagathbandhan while seeming to try to bend RJD to his will. All the schmoozing between Trump and Xi hasn’t reduced the North Korean nuclear threat. Could we have predicted these outcomes before they actually happened? Yes we could have—not with IQ or EQ, but with ‘Game Theoretic Quotient’. A new intelligence, a new way of looking at the world. Game Sutra highlights the underlying strategic considerations of entities as diverse as heads of state, bitcoin miners and CEOs of internet companies to explain their decisive choices. Immerse yourself in its heady mix of cogent fact and smart analysis to develop your ‘game theoretic quotient’. Your world will never be the same again.
Chapter 33: North Korea Is Not Really Cuba
North Korea Is Not Really Cuba
This chapter analyses the escalating tensions between the USA and North Korea in 2016–2017 as an episode of brinkmanship between a superpower and a country which is minuscule in every respect except for its nuclear capability. It is argued that such stand-offs, unlike the ones between equally matched powers like the USA and the Soviet Union, are inherently intractable. This is the ‘paradox of asymmetric nuclear brinkmanship’.62
The discipline of game theory cautions us against assuming that a situation better for all parties will automatically come to pass through the operation of self-interest. Even if the desired situation is a Nash equilibrium, in the sense that no party can do better by unilateral deviation, ...