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Confrontation analysis (also known as dilemma analysis) is an operational analysis technique used to structure, understand and think through multi-party interactions such as negotiations. It is the underpinning mathematical basis of drama theory.
It is derived from game theory but considers that instead of resolving the game, the players often redefine the game when interacting. Emotions triggered from the potential interaction play a large part in this redefinition. So whereas game theory looks on an interaction as a single decision matrix and resolves that, confrontation analysis looks on the interaction as a sequence of linked interactions, where the decision matrix changes under the influence of precisely defined emotional dilemmas.
Confrontation analysis was devised by Professor Nigel Howard in the early 1990s drawing from his work on game theory and metagame analysis. It has been turned to defence, political, legal, financial and commercial applications.
Much of the theoretical background to General Rupert Smith's book The Utility of Force drew its inspiration from the theory of confrontation analysis.
I am in debt to Professor Nigel Howard, whose explanation of Confrontation Analysis and Game Theory at a seminar in 1998 excited my interest. Our subsequent discussions helped me to order my thoughts and the lessons I had learned into a coherent structure with the result that, for the first time, I was able to understand my experiences within a theoretical model which allowed me to use them further
— General Rupert Smith, The Utility of Force (p.xvi)
Confrontation analysis can also be used in a decision workshop as structure to support role-playing for training, analysis and decision rehearsal.