Game Theory is a mathematical construct that attempts to model how rational interactions (e.g., competition, cooperation) should proceed. Use of the word “game” does not suggest that the context is frivolous; only that the people (and organizations) involved can have differing information and ignorance, goals and aversions, advantages and disadvantages, rewards and penalties influencing their courses of action.
Thirty years ago, I wondered whether Game Theory might shed some insight into SE processes by defining them as an asymmetric game of imperfect information (the developer against “nature”). After working through a first course, I concluded that the basic framework is not directly and generally applicable to the SE process itself: it is more useful for SE to be accessed from the perspectives of the Scientific Method and Vector Space Optimization. However, it contributes significantly to understanding many important decision-making processes that occur in the real world. A review of the basic concepts is well worth the System Engineer’s time and effort.