This presentation is an practical explanation and the motivation to the major standoff between India and China and their consequences using concepts of Game theory.

1. A Game theoretic
analysis on Ladakh
Standoff
Group 1
Karan Verma
Saransh Thahrani
Yushey Ahmed Tusi

2. About Ladakh stand off
and Problem Statement

3. Background
No publicly available
map depicting Indian
version of LAC.
Chinese map includes
much of Indian Ladakh
region and Arunachal
Pradesh.
In 2018, the countries
were involved in
standoff at Doklam
region.
On May 2020, China
incited fresh skirmishes
in Indian territory.
Chinese troops
advanced into Indian
territory, shots were
fired from both the
sides.
Indian
government responded
by banning Chinese
apps: TikTok, Baidu,
Tencent, etc.
Chinese strategy of
'Salami Slicing'.
To assert their
dominance and
force
Chinese monopoly
in South Asia
region.
Developing public
image after
damage inflicted
by COVID-19.
India's alliance
with US
Causes

4. Clash
• Chinese troops entered the Pangong Tso lake, capturing 65 kms of Indian-patrolled territory.
• Major skirmish took place between the dueling armies in Muguthang, Naku La and Sikkim, both sides pelting stones and exchanging warning shots.
• Chinese troops pitched tents in great numbers at Galwan river, Eastern Ladakh.
• Major clash took place, both sides exchanging fire in Galwan Valley.

5. Utility Function

6. Payoff Matrix and Nash Equilibrium

21. Phase 2 – Using game theory for further
decision of India and China
• Ladakh standoff current situation - As far as
PLA’s (China's People's Liberation Army)
force levels are concerned, there has been
no significant reduction. “Situation is stable
but unpredictable. As far as PLA's (China's
People's Liberation Army) force levels are
concerned, there has been no significant
reduction,” said Indian Army Chief General
Manoj Pande on the situation in eastern
Ladakh.
• The main reason of this stand-off is
capturing fingers in Ladakh which they
claim. Currently, from F4 to F8, the region is
neither comes under India or China and that
region is called as Area of
differing perceptions.

22. Defining Utility
• The major demand of both
the countries is that they
want to capture the area
from F4 to F8
• Defined utility based on
Area that they will be
getting. Each peak or
Finger i.e., F1, F2, F3....F8
represent unitary utility.
Area Utility Actual
China
Claim
India
Chaim
F1 1 India ✔
F2 1 India ✔
F3 1 India ✔
F4 1 Grey ✔ ✔
F5 1 Grey ✔ ✔
F6 1 Grey ✔ ✔
F7 1 Grey ✔ ✔
F8 1 Grey ✔

23. Payoff Matrix and Mixed strategy Nash
Equilibrium using Linear equation
• Hence, Payoff Matrix according utility function will be:
• After solving this by Mixed strategy (to get chances of each strategy a
player will play) by linear equation, we get that-
Mixed Strategy - Using
Linear Eq'n
China
Escalate Peace
India
Escalate 75% 25%
Peace 75% 25%
Payoff Matrix
China
Escalate Peace
India
Escalate 0 0 3 1
Peace 1 3 0 0