Does this tie in with Theory Of Mind?

Two important aspects in this:

1. Decisional Feedback, that is, knowing how you or another party will react affects your current decision.
2. Paradox of Choice Awareness - that is, so long as you know that a decision may lead to a change of state (as per 1), that change is likely. Bluff, double-bluff, etc.

This ties in with decision-making, et al. See Majone and Decisionism.