• Honam Mathematical Journal
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• v.35 no.2
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• pp.225-234
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• 2013

Many studies of experimental economics have produced outcomes which contradict the predictions of Nash equilibrium, which relies heavily upon the premise of selfishness of an individual. In the games involving contexts of social conflicts represented by the prisoners' dilemma game, the experiments yields outcomes quite different from what are predicted by the conventional wisdom. In order to fill this gap between the conventional Nash Equilibrium and experimental outcomes, non-selfish (or other-regarding) motives of human behavior are introduced and then a new equilibrium concept, RAE-equilibrium is developed. It is also proved that an RAE-equilibrium exists under quite general conditions. Then it is applied to the prisoners' dilemma game that some of the experimental outcomes can be explained.

• Korea Trade Review
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• v.44 no.3
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• pp.105-121
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• 2019

This study applies diverse game theories to the US-China Trade War. The US-China Trade War can be analyzed as a game situation because the strategic decision-making process to maximize one's profit while considering the reaction of the other party is a game situation. However, related research suffered from some mistakes in applying the US-China Trade War as it is to classic game theory, because while the prisoners dilemma is based on the situation of No Communication, No Trust, No Cooperation, the US-China Trade War has a precondition different from that of prisoners dilemma, since it mutually communicates information and negotiation is repeated several times in a cooperative situation. The result of the trade negotiation will likely end as 'cooperate-cooperate'. Further, considering trade volume, trade interdependence, bargaining power based on economy, and the scale of damage caused by the Trade War, the US-China Trade War is progressing with the bargaining power of the US being higher than that of China. Since the current US-China Trade War is in an asymmetrical situation under the dominant bargaining power of the US, it is likely to reach 'US defect-China cooperative' in the long run.