The Bridge Between Sustainability and Game Theory
As my interest in studying economic theories and business strategies in sustainability & environment grow, I began to encounter the applications of Game Theory in the articles I read. Game theory is essentially a theoretical framework for present social situations among competing players. It’s more so the science of strategy and employing the most optimal decision you can make in a pressurized strategic situation. In these competitive situations, the outcome of the player’s choice of action depends on other participants’ actions.
As a competitive chess player for eight years, I know chess is a perfect example of game theory. Because chess is a game that is not based on probability or chance, but rather strategic and tactical thinking, it is a deterministic game. The rules of the game are also known to both of the players before the start of the game, and they have remained constant throughout the years, which is why chess is such a good example. Chess is seen as an example as both of the respective players know the possible moves and their effect on the overall game.
Game theory can also be applied to all areas of the environment, for example, climate change, and is a helpful strategy for policymakers and governments. In his game theory analysis, Oleg Smirnov, Associate Professor of Political Science at Stony Brook University, stated that much of the power of renewing the Paris Agreement on Climate Change is on large global countries, like India and China, which would have to take drastic measures to reduce their greenhouse gas emissions. The professor developed a model using game theory to predict the actions of the various countries that have signed onto the Paris Agreement. The countries, which were the players, and their efforts to mitigate climate change affect the decisions of other countries as well. In his paper, he notes that along with the United States’ withdrawal, expectations and leadership will fall on the remaining control to make up the difference of mitigation.
Interactions between people, the essential game theory lens, may also play a part in people maintaining a sustainable lifestyle, which is a choice needed to mitigate global climate change. According to a paper done by researchers in the School of Management at China University of Mining and Technology, preferences made a difference in residents’ choices. Benefits included residents practicing a sustainable lifestyle more frequently. They also discovered that large nodes (residents with more neighbors) play a crucial role in guiding residents to implement a sustainable lifestyle. In conclusion, social interaction and the example of people around the community impact individual decisions on whether or not to practice a sustainable lifestyle. So, if local governments promoted a sustainable lifestyle more in local communities, people living in those communities will be influenced and may implement the practices into their lifestyles.
Want to learn more?
A Combinational Game Theoretic Analysis of Chess Endgames
Game Theory Predicts Serious Obstacles to Climate Agreement
Does Social Interaction Have an Impact on Residents' Sustainable Lifestyle Decisions?