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The game theory that led to nuclear standoffs

The Indicator from Planet Money

NOTE

The Game Theory of Nuclear Standoffs

The roots of rising nuclear tensions lie in game theory, specifically the game theory of nuclear standoffs. While game theory is a fundamental concept in economics, it may not accurately reflect human behavior. The mathematician John von Neumann, who shaped U.S. nuclear policy and economic theory, introduced the mathematical description of zero-sum games, where one player's win leads to the other's loss. This raises a crucial question: When can mathematical models like game theory guide us, and when can they potentially push us to the edge of destruction?

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