NOTE: This post is about the TV show “Game of Thrones.” If you are not caught up, there are some spoilers in here.
Tonight is the season finale of Game of Thrones, and once again I think it is worth considering the fantasy world with an eye towards economics. The short-version: I think Danaerys may be making a mistake by failing to consider Cersei’s payoff function.
The situation facing Cersei and Danaerys is nicely represented by game theory. In the season finale it appears they will be meeting under a temporary white flag, with Danearys likely seeking a temporary detente in order to fight white walkers. Each player can either cooperate and fight the white walkers together, or they can betray the other and attack. It is possible that either Cersei or Danearys could show up to the meeting, say “I will continue to fight you”, and walk away. More likely they will try to hatch some sort of scheme and betray the other side.
A picture taken on July 30, 2017 shows a graffiti by street artist ‘Axe Colours’ portraying British actress Emilia Clarke known for playing Daenerys Targaryen in The Game of Thrones TV series in Barcelona. / AFP PHOTO / Josep LAGO (Photo credit should read JOSEP LAGO/AFP/Getty Images)
This a classic cooperate or betray game theory problem of a prisoners dilemma. If Dany cooperates and Cersei cooperates,…
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