Game Theory Approach to Decision Making Processes in International Forestry Policies

Abstract

Game theory, especially in economics, is an analysis of multi-person decisions in which each player thinks what the others will do assuming that the players act rational-ly. It aims to determine the "what to play" situation. It has been the purpose of game theory since its beginnings in 1928 and has been applied to various situations in relation to economics, politics, and business and phenomenon such as war, etc. In the meantime, the relationship between forestry and game theory has been limited due to the shortage of resources in the international literature. The aim of this study is to introduce the game theory ap-proach in the decision-making processes of the International For-estry Policy. The will in the hands of policymakers causes them to be under the influence of concerns encompassing both the national and international levels during the decision-making processes. It is assumed that other decision-makers have a limited view and do not respond to the assumption of common knowledge. In some cases, this situation results in questioning the impact of the decision. Lacking in terms of effectiveness, efficiency, feasibility, timing, and foresight in these decisions may afford decision-makers political satisfaction, but only temporary and one that would be considered as politically incorrect after decades. Thus, understanding the im-plications of alternative political/institutional designs requires a game-theoretic treatment rather than a decision-theoretic one. For these reasons, incorporating the concept of game theory into the decision-making processes on forestry policy, which aims to realize sustainable utilization, can make decisions more consistent.