Game-Theoretic System Design for Non-Cooperative Scenarios

Modern defense systems are often designed to static sets of operational requirements and system specifications. This process has generally worked well in the past but fails to account for the strategic interdependence of design choices made before developing and deploying systems. Capturing this interdependence of design choices may prove beneficial and cost-effective. This paper demonstrates how Game Theory and physics-based simulation can drive design decisions for noncooperative systems. Game Theory is the mathematical study of strategy and payoffs between rational, self-interested actors. Simulation and Value Focused Thinking (VFT) provide a Normal Form representation that can be analyzed for the Nash Equilibria. A scenario using space domain awareness demonstrates the method, and results show how changing priorities of the value model change the corresponding stable design point.