The fact that nations around the world need each other makes international relations among countries even more urgent to be maintained. Game theory, a concept that represents the relation between countries like a game, tries to explain why every nation has to consider the action and reaction regardings what is happening as well as what is going to happen next.
To create a business person that can think strategically on an international scale, the class Decision Management and Negotiation invited Ilham Nugraha to share his knowledge in a guest lecture hybrid session held on Monday (18/07/2022).
According to Ilham, game theory can help nations strategically deal with their interdependent character towards another country. Even so, this theory cannot portray all the elements of reality since its characteristic tends to be mathematical and simplify the real things that are happening.
“So if you have many things into account, you have to narrow it down into action and reaction, and many things,” said Ilham explaining the weakness of this theory.
Although it sounds difficult, he put this lecture with a myriad of examples so that it can make the students understand the material more easily. This session was delivered in English and was held vaguely for an hour. In the last 30 minutes, Ilham also opened the question and answered session for all the audience who had a question.
Before closing the lecture, he also mentioned several things about the use of game theory, one of that is regarding “the cause” of an event. “To fully utilize the game theory, you have to understand the underlying cause to make your assumption right,” said him describing why looking for something underneath the visible event is highly essential.
Written by Student Reporter (Rheza Mahesa Raharjo, Management 2023)