David Canton – For the London Free Press – June 17, 2006
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It’s no surprise that those fighting in court do not always act in a rational manner.
Software using game theory has been used to resolve litigious issues in a way that results in better results for both sides.
Game theory is a branch of applied mathematics, or the application of mathematical techniques to other areas. Game theory studies how people interact in a strategic manner with others, then tests the utility, or potential beneficial or harmful effects, of the outcomes produced by these interactions.
The television reality show Survivor is a study in game theory. Papers have been published about how the contestants use different strategies, such as the popular “alliance,” and how these can help or hinder their success.
The study of strategic interactions is highly complex, as one must account not only for actions and words, but how their possible strategies are perceived by others and, in turn, how to react to potential strategic responses.
In real life situations people do not always act rationally to maximize personal gain. In the case of a recently separated couple, for example, where tensions and emotions may be running high, each party may be more interested in hurting their ex rather than benefiting themselves.
Alternatively, each side may calculate that they will get more if they go after their partner’s prized possessions. Often, it comes down to the financial value of their property, but the reality is that most people have attachments to certain items that go beyond money.
The television reality show Survivor is a study in game theory.
Researchers in Australia have used game theory to develop a software program called Family Winner that is designed to produce a fairer outcome for couples dividing property. In creating the software, John Zeleznikow and Emilia Bellucci focused on creating a system where each party gets more of what they actually want.
The program sounds quite simple in theory. Each party gets a certain number of points. They are then told to assign points to items based on how much they want each item. The more they value the property, the more points they award to that particular item.
The parties also assign a number to their preferences for dealing with certain property, such as whether they feel the matrimonial home should be sold or not. The program begins with the simplest decision — the item with the greatest difference in value to each party.
In reality, the program is complex. It takes into account a hierarchy of issues based on how much each side values each issue or item, and self-adjusts based on who got what. In other words, if the program mathematically determines that you lose an item of value to you, you receive compensation on other items of value.
Last year, the software was tested in a study of 50 couples and the outcomes were evaluated by Victoria Legal Aid. It turns out that each party was much more likely to end up with more of what they wanted. The study concluded each party received 70 to 80 per cent of their original list.
The creators are hopeful that this software proves as effective in practice as it did in the test run. They envision the software being adjusted for use in all sorts of disputes, such as building disputes or industrial conflicts.
Taking the emotions or politics out of the equation may lead to results that allow each party to get more of what they really want.