Game Theory - Triple Threat

This video is the second video in my game theory series. This video covers a concept I like to call triple threat. Triple threat is a game that theoretically starts as a two player game that becomes a three player game with the arrival of another player. Triple threat theory works for larger numbers of players as well but is most easily explained in terms of adding a third player.

The video explains the triple threat theory using wrestling examples. The idea of the name triple threat came from the triple threat wrestling matches in World Wrestling Entertainment (WWE). In the examples, one player has a definite advantage over the other player. A third player arrives. The third player needs to decide if it is to his advantage to team up with one of the existing players or if an everyman for himself approach is the best. The examples vary around the strength of the new entrant and the probability that teaming up will be successful. The triple threat theory looks at the conditions when cooperating against larger opponents or competitors can be advantageous.

Triple threat approach can be applied in the real world by smaller organisations to restrict the power of the large corporations through cooperation. Unfortunately, there are not too many real world examples where such an approach has been successful. The examples of Lumezzane Valley and Chiang Mai businesses are briefly discussed.

There will be several videos in this game theory series. The other videos will focus on particular areas in game theory such as adopting winning strategies and controlling the opposition.

The video can be watched at the link below: