International relations in deterrence theory and game theory

Discuss the insights we gain from the analysis of international relations in deterrence theory and game theory, underscoring how the rational and unitary state assumptions relate to such theories or approaches.

International relations can be understood by applying game theory. The way states behave in the international system, can be explained by using game theory. One basic assumption that game theory makes is that all actors in the system (game) are rational. Rationality means that each individual does what he thinks is best for him irrespective of the behavior of other individuals. If we assume this, game theory can be used to model a certain international scenario and be used to determine the most probable outcome. For example, the prisoner’s dilemma problem can be used to model the behavior of two states who act in their own self interests. Game theory models can be used to explain why states do or do not cooperate and how profitable outcomes can be reached. Game theory also finds its application in the models of deterrence. Deterrence is a strategy to prevent an attack, by which governments threaten an immense retaliation if attacked, such that aggressors are deterred because the damage would outweigh any likely benefit. Such a threat should be credible. It is assumed that States are unitary actors each moving towards their own national interest. This is similar to the assumption of rationality in game theory.  There is a general distrust of long-term cooperation or alliance among states. Deterrence also assumes that a nation adequately understands the calculations of an opponent. For example, during the Cold War, it was assumed that nuclear weapons were the most effective deterrent to war between the States of the East and the West.