"Game theory" in jurisprudence

May 6, 2016, midnight

"Game theory" in jurisprudence

"True knowledge consists not in an acquaintance with facts, that make a man a pedant, and to use facts, which makes him a philosopher."
Henry Thomas Buckle (1821-1962).

Each of us in his life asked the question: "what would have happened if I would have done differently? If I didn't do something or, conversely, did it? If....if...if....".
Every day we are faced with the choice of what to do, what to say, how to act in a given situation. Sometimes the choices we make on a subconscious level, without thinking about how and what. This choice is characteristic of our everyday life. However, not all of us is at the household level, sometimes you have to make decisions that affect, if not the whole life, its part, or of which the consequences are not turn back the clock already.
There are cases when the choice is made for us. A characteristic example would be the phrase of Henry Ford: "You can get a "Ford-T" any color provided that this color will be black."

Practicing lawyers, especially the judiciary, in his career with the ubiquitous problem of adopting a particular strategy conducting business, the adoption of a decision. It is interesting to look at the conduct of the projects under the prism of game theory.
Game theory is a branch of applied mathematics, mathematical method of studying of optimal strategies in games. It would seem, as a branch of applied mathematics can apply to the law, and, in General, what kind of games could be at stake sometimes billions, land, holdings, the fate of people, etc. However, as shows experience, it is the application of game theory (as one part) brings a huge amount of success and positive outcome.
Game theory is not only about decision making, choice and strategy. Game theory helps to choose the best strategy based on the submissions of other participants, their resources and their possible actions. This circumstance is characteristic of game theory from the theory of decision-making.
Game theory has a rich history and originates from neoclassical Economics. First the mathematical aspects and applications have been described in a classic book of 1944, John von Neumann and Oskar Morgenstern "Theory of games and economic behavior".
Nobel laureate in Economics John Nash wrote his thesis on the theory of games in 1949. The first concepts of game theory analyze a zero-sum game when there are losers and winners for their score players. Nash, in his work holds the idea that the approach of Adam Smith to the competition, when everyone is for himself, not optimal and a more optimal strategy when everyone tries to do best for themselves by doing better for others.
A great contribution to the application of game theory was the work of Thomas Schelling, "the Strategy of conflict", which addresses the different "strategies" conduct of the parties to the conflict.
Culturological concept of the game was given in the work of Johan Huizinga "Homo Ludens", which refers to the use of games in justice, culture, and ethics.
According to the theory of games in Economics, mathematics written a significant amount of scientific literature thesis, however, is not found in the fundamental works about the use of game theory in law.
Game theory studies the abstract model of a conflict situation, i.e. a situation which involves at least two parties, represent individuals or groups with partly or completely conflicting interests. So to act, it is necessary to calculate the likely other choice, it turns out the uncertainty of decision making, which may not only affect one side, as this depends on many factors and largely unpredictable actions of the opposite side.
The characteristics of games as a mathematical model is fit to the understanding of game theory in the field of jurisprudence. So, these include: the presence of several parties; the uncertainty of the behavior of participants related to the presence of each of several options; the difference (mismatch) of interests of participants; the interrelatedness of behavior of participants as the result obtained by each of them, depends on the behavior of all participants; rules of conduct known to all participants.
Games are a competition characterized primarily by unpredictability of the outcome. As a rule, the conflict in this case, enter first the party that, for objective reasons, from the very beginning doomed to defeat. In the minds of the involved parties in the conflict develops a certain pattern of behavior itself and the enemy. Further, on the opposite side changes occur in this model line up new steps of behavior in these new situations.
The resolution of the conflict relating to the class of "games" where you need to anticipate not only their own actions but also the actions of the enemy, called "reflexive games". The basic idea of "reflexive games" — this reasoning is one side of the conflict about the possible actions and the actions of the other party.
The principle of "games" similar to a legal dispute, isn't it?
Specified easily illustrated by specific legal practices.
For example, the issue of conclusion of a major contract. Often, entrepreneurs in the pursuit of profit enter into transactions that subsequently lead to disastrous consequences due to the fact that the party on the other side of the game was not thoroughly tested. So, before you sign a contract, you need to check of the player (counterparty), including the presence of court cases against him. If in the court there is a large number of cases against him, it should at least be wary and think how important is this contract for you and what will be the consequences for you in the event of default by the counterparty of its obligations (financial loss, damages, litigation, and the impossibility of the actual collection of money owed to you, etc.). It is necessary to calculate in advance the possible actions of the player-partner and best protect themselves from the negative consequences of default of the opponent, for example, by ensuring in any way the performance of the contract.
Another good example may be the conclusion of the contract of assignment. Side by good for her in terms of large discount decided to acquire the right of claim to the company, which is under bankruptcy. So, we have three players: the assignor, the assignee and the debtor. The assignee checks the debtor, and, making available all his properties, makes the conclusion about the possibility of getting money through the sale of property of the debtor in the bankruptcy proceedings. The contract of assignment. However, the assignee makes a mistake: not evaluating the possible behaviors of the assignor, which, like the debtor is in a bankruptcy stage. In the end, the Treaty of cession is void, the parties will return to its original position, the right of claim against the debtor shall revert to the assignor, and the funds that the party had paid for the assignment of the right to return is not possible, because even if the recovery of the debt from the debtor, the funds will be used to repay the first and second stage.
Game theory is applicable to household law conflicts. Imagine that in a family conflict the husband and wife, intending to divorce, you want to keep the only child. Husband, preparing for the trial, analyzes the likely arguments of his wife: he, father, he says, does not care about the child, spending time outside the house, and to intrust him with the education. In response to these alleged arguments husband is looking for witnesses who would have shown up in court the exact opposite. But reflection is and wife. Knowing the psychology of your husband and anticipating these or similar actions, it goes the other way and "works" with the child attracts. it on its side, so that when the court asks the question: "who do you want to live with mom or dad," the child answered in favor of the mother.
This is quite a elementary reflection can become quite complex, up to forecasting and modeling issues for judges, answers of witnesses, the scene of reconciliation, quarrels, etc. in fact, game theory covers some of the fundamental truths of decision-making. If the company decides to invest, it must take into account the reaction of others, whether competitors, customers or suppliers. The company should be able to calculate the possible response of competitors.
A variety of such situations in the real work of the lawyer doing the game theory necessary to prepare a highly qualified specialist.
Faced with a complex multi-level legal problem, look at it under the prism of game theory, study the opponent, to calculate in advance all his subsequent steps, try to predict the opponent's moves, be alternative ways of behaviour depending on the behaviour of the opponent, and you will be able to reduce their participation in the game to win!