The "mulls scorched earth strategy" part is completely solid game theory.
Always make it clear for your opponent that your worst-case scenario will result in severe blowback if at all possible. Then you can a) try to ensure that scenario never happens and b) mitigate the outcome or response if it does.
Always make it clear for your opponent that your worst-case scenario will result in severe blowback if at all possible. Then you can a) try to ensure that scenario never happens and b) mitigate the outcome or response if it does.