Higher education in Asian countries and the role of international ...

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at sub-regional, regional and international levels to align state interests and preferences coupled
with power, and it is only possible through establishing and strengthening IGOs. The integration
and cooperation through IGOs are based upon rational self-interest of states rather than
practicability and usability as seen in functionalism and neo-functionalism. Like neo-realism,
inter-governmentalism also agree with this premise that powerful states have higher influence on
the behavior of IGOs and such states, comparatively, drive more benefits.
3.4.5.8 Game Theory
Game theory or theory of games was initially developed by John von Neumann and Oscar
Morgenstern and first appeared in their book entitle The Theory of Games and Economic
Behavior (1944) but to study the politics it was applied in 1960. Game theory is based on a
mathematical method of decision-making in which a competitive situation is analyzed to
determine the optimal course of action for an interested party (The American Heritag Dictionary,
2009). This theory is helpful in anticipating and explaining the actions of all agents or actors who
participate in a competitive situation. "Game theory is an umbrella theory for the rational side of
social science, where 'social' is interpreted broadly, to include human as well as non-human
players" (Aumann, 1987). Game theory is applied in decision making, in political, economic,
business and military planning, to solve social and ethical dilemmas. It is also used in the study
of linear programming and operational research. The application of Game theory in the study of
IGO is not very common however it will increase with the passage of time.
The core objective of the application of game theory is to find equilibrium in a particular
situation where each actor adopts a strategy that they are unlikely to change. In game theory
many equilibrium concepts have been developed to capture the idea of cooperation and
collaboration i.e. the Nash equilibrium, Correlated equilibrium, Sequential equilibrium, Self-
confirming equilibrium. Likewise there are many types of games, which are very helpful to
understand the behavior of IGOs, to locate the best choices available for international actors,
maximize outcomes of actions and to grasp a wide class of interactions among actors. These
games include: Cooperative or non-cooperative games; symmetric and asymmetric games; zero-
sum and non zero-sum games; perfect information and imperfect information games; peace and
war game, and coordination game.