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SSRN Electronic Journal
Article . 2018 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2019 . Peer-reviewed
Data sources: Crossref
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Stabilizing Cooperative Outcomes in Two-Person Games: Theory and Cases

Authors: Brams, Steven J.; Ismail, Mehmet S.;

Stabilizing Cooperative Outcomes in Two-Person Games: Theory and Cases

Abstract

We show that a cooperative outcome—one that is at least next-best for the players—is not a Nash equilibrium (NE) in 19 of the 57 2 x 2 strict ordinal conflict games (33%), including Prisoners’ Dilemma and Chicken. Auspiciously, in 16 of these games (84%), cooperative outcomes are nonmyopic equilibria (NMEs) when the players make farsighted calculations, based on backward induction; in the other three games, credible threats induce cooperation. More generally, in all finite normal-form games, if players’ preferences are strict, farsighted calculations stabilize at least one Pareto-optimal NME. We illustrate the choice of NMEs that are not NEs by two cases in international relations: (i) no first use of nuclear weapons, chosen by the protagonists in the 1962 Cuban missile crisis and since adopted by some nuclear powers; and (ii) the 2015 agreement between Iran, and a coalition of the United States and other countries, that has been abrogated by the United States but has forestalled Iran’s possible development of nuclear weapons.

Country
Germany
Keywords

C72 - Noncooperative Games, Sanctions, F51 - International Conflicts, Negotiations

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    influence
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
bronze