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PEACE TALKS: "Israel's Conflict as Game Theory"

PEACE TALKS: "Israel's Conflict as Game Theory"

1 June, 2011

 

For any Peace Talks - in June 2011 as Relevant as ever: 

Israel's Conflict as Game Theory

 

By Prof. Yisrael Aumann - Nobel Prize Laureate

October 23rd, 2010

 

Two men - let us call them Rick and Steve - are put in a small room containing a suitcase filled with bills totaling $100,000. The owner of the suitcase announces the following: "I will give you the money in the suitcase under one condition...you have to negotiate an agreement on how to divide it. That is the only way I will agree to give you the money."

 

Rick is a rational person and realizes the golden opportunity that has fallen his way. He turns to Steve with the obvious suggestion: "You take half and I'll take half, that way each of us will have $50,000."

 

To his surprise, Steve frowns at him and says, in a tone that leaves no room for doubt: "Look here, I don't know what your plans are for the money, but I don't intend to leave this room with less than $90,000. If you accept that, fine. If not, we can both go home without any of the money."            Read the whole article

 

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