Jan 4, 2008

The Writers' Strike and Game Theory

Imagine that two minivans are playing a game of chicken. Each is driving towards the other, and the minivan that turns first loses. How do you win such a game? You make the driver of your minivan someone that the people in the other minivan thinks actually wants to crash.

Producers seem to be following this tactic in their fight with the Writer's Guild. According to Slate.com the producers are following the hard line of Rupert Murdoch. And, as Slate.com points out, Murdoch might benefit from a strike because his main cash cow, American Idol, is unaffected by the strike, whereas American Idol's scripted competition will be forced to show reruns if the strike continues.

Slate.com gives the following warning to producers "Does it occur to the other networks, which have no such weapon in their arsenal, that by following Murdoch's hard line, they are enabling him to get the most out of his competitive advantage while they are left to scramble with reality shows and reruns of cable programming?"

My bet is that not only do the other networks realize this but they consider it a good thing! If the writers come to believe that Murdoch wants the strike to continue and that the other producers are going to follow Murdoch then the writers will realize that the only hope of avoiding a long strike (i.e. the car crash) is for them to give in.