Game theory games

GETTING INSIDE IPE
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GAME-THEORETICS
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Symmetrical
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Prisoner’s Dilemma
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Stag Hunt (Multi-player)
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Chicken
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Deadlock
Asymmetrical
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Non-mirrored payoffs
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Reflect asymmetrical goals and resources of players
GAMES- SYMMETRICAL
PD
Alpha
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Nash equilibrium in Bold, Pareto Optimal in italics
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Prisoner’s Dilemma: Models free-riding temptation
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Alpha
Stag Hunt (Multi-player>2 possible) Assurance,
Uncertainty
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DC>CC>DD>CD
SH
CC>DC>DD>CD
Chicken
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DC>CC>CD>DD
Chkn
Alpha
Beta
c
d
3,3
1,4
4,1
2,2
Beta
4,4
1,3
3,1
2,2
Beta
3,3
2,4
4,2
1,1
GAMES- SYMMETRICAL
DL
Alpha
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Nash equilibrium in Bold, Pareto Optimal in italics
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Deadlock
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•
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Coor
DC>DD>CC>CD
Coordination Game Battle of Sexes
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Concert or Dog Track (wife’s is dog track
preference)
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From Husband’s perspective CC>DD>CD=DC
Harmony CC>CD>DC>DD
Alpha
Beta
1,1
1,4
4,1
2,2
Beta
4,3
1,1
1,1
3,4
GAME-THEORETICS- ASYMMETRICAL
PAYOFFS
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Called Bluff
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•
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(Alpha) Powerful country
plays Prisoner’s Dilemma.
(Beta) Weaker country
plays chicken
CB
Alpha
Beta
3,3
1,4
4,2
2,1
Powerful country has dominant defect strategy because Beta better off with sucker’s payoff than with
defect-defect outcome. Could model bilateral trade deal between small and large countries.
Suasion-- Could model multi-lateral trade regime led by large power willing to bear costs.
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•
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Alpha plays Harmony (cc>cd>dc>dd) with a
dominant cooperate strategy
Beta
Beta has a chicken payoff leading to a preference
for defection.
Gains of cooperation are always better than defection
for Alpha.
Alpha
4,3
3,4
2,2
1,1
GAME-THEORETICS
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Pay-offs can be structured to reflect the perceived payoffs of actors
in IPE.
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Permit simplified analysis of various conundrums or cooperation
problems in IR.
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Problem: method are specifying models that are sufficiently
dynamic, but also parsimonious.
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Problem: assumptions of rational actors don’t always withstand
actors’ perceptions and framing of context-- may lead to behavior
that is rational only with decision-makers cognitive
RULES OF THE GAME
• Same-sized
• Larger
states play Prisoner’s dilemma with each other
states have slightly exaggerated payoffs with each other.
• Large-state
vs. small-state Called-Bluff (dependency, merc)
• Large-state, small-state
could also be Suasion (Heg. stab. theory)
RULES OF THE GAME
Bigs
PD
• Same-sized
states play
Prisoner’s dilemma with
each other
• Large-state
vs. small-state
Called-Bluff (dependency,
merc)
• Large-state, small-state
could also be Suasion
(Heg. stab. theory)
Alpha
CB
Big
Littles
Beta
PD
4,4
1,5
5,1
2,2
Little
3.5,3.5
1,4
4,3
2,1
Alpha
Beta
3,3
1,4
4,1
2,2