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Game theory shows that sometimes threats can bring about stability while in other cases, beyond a threshold,
threats can prove to be destabilizing. The key is to find that threshold. This will depend upon the pay-off structures
and probabilities assigned to the likelihood of strategies which an opponent will adopt. Thus, perception about how
the opponent will react becomes important in deciding own strategies.
Using game theory for understanding Indias strategic behaviour is uncharted territory. Chief Economic advisor
Kaushik Basu in his talk at the IDSA in November 2010 emphasized upon the need for Indian think tanks to use
game theory in modelling foreign policy behaviour. Some work has begun at the IDSA, but more needs to be done
particularly in military war colleges and defence think tanks.