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Game Theory Hostage Rescue

Summary: The authors postulate that game theory is a useful tool to analyze both the actions of terrorists and a government's response to terrorism. Terrorists respond to how governments respond to them, and vice versa; thus by using game theory to study terrorism, the analyst may be able to come to some conclusions as to which actions are appropriate for a government to take to mitigate the threat of terrorism. The article highlights 6 reasons why game theory is appropriate to the study of terrorism: • Game theory captures the strategic interactions between terrorists and a targeted government, where actions are interdependent and, thus, cannot be analyzed as though one side is passive. • Strategic interactions among rational actors, who are trying to act according to how they think their counterparts will act and react, characterize the interface among terrorists (hardliners vs.