Doctor Strangelove: Commitment Devices

  Plan R     The Doomsday Machine

Probably the greatest "black comedy" ever made is the 1964 Stanley Kubrick movie "Dr. Strangelove." The movie has a special interest for game theory and industrial organization because it contains two scenes in the Pentagon's War Room that are based on the potential importance of commitment in some strategic situations in which a threat might not be a credible deterrent.

In the first scene General Buck Turgidson (George C. Scott) explains Plan R to the President (Peter Sellers), and points out that it was put in place because the US deterrent "lacked credibility." The last couple of minutes of this clip aren't relevant for game theory, but Buck does receive a phone call that'll make you laugh.

In the second scene the Soviet ambassador has just been told by the Soviet premier in a phone conversation that his government has armed its Doomsday Machine. He describes the Doomsday Machine, and then Dr. Strangelove (also Peter Sellers) explains the machine as a commitment device. After the 4:55 point, the clip moves on to a different scene that's not relevant for us.

As a bonus for economics, in the second scene the ambassador humorously describes the significance for the Soviets of the classic guns-and-butter trade-off.  
 

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