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Home >> Economics Theory  >> Game Theory >> Game Theory and Law

Game Theory and Law


The Game Theory and Law deals with the relationship between law and Game Theory, how the Game Theory can be put into practice through law. The application of the Game theory in the sphere of law has provided a new outlook towards analyzing law. This relationship can be traced back to the days of Plato. Plato while writing the concluding dialogue of his book the Laws has also analyzed the strategies of Game Theory as it is related to the rational behavior of man. He believed the games to be states of strategic relation. Plato relates the Theory of Game with rationality that is inherent in human nature. He talks about rational people selecting a set of strategies to maximize their payoffs. According to Plato it is absolutely necessary for the human beings to be rational and it is only then that a civic order can be established.

Modern Day Application of Game Theory

The Game Theory has found many usages in the present day. Earlier it was only applied in Economics and Business but now the usage has increased and it is applied to the other disciplines as well. The various strategies of the Game Theory have found application in the different segments of Law such as labor, contract law, anti-discrimination, environmental law. The Cooperative Game theory can be used to make people behave in a more rational way. For example, in the case of a motorist and a pedestrian where each of their decision will have a bearing on the opponent. But on the other hand no one is consciously aware of each other’s decision. There can be various possibilities regarding the consequence. These possibilities will help the lawmakers to formulate laws to ensure safety on road. According to Picker, the Game theory will provide a rigorous method to contemplate about the strategic behavior of man and formulate laws based on that behavior in an organized way.

Acclamation to the Game Theorists

In the past five years Game Theorists have successfully applied the theories and reaped good results. They have been able to take the theories outside the parameter of books and use them in practical life with much precision. This effort has also earned them recognition in the form of Nobel Memorial Prize being awarded to the Game Theorists in 1994.