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Regime change games with an active defender

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  • Jann, Ole
  • Schottmüller, Christoph

Abstract

We analyze a regime change game in which an active defender can invest in costly, unobservable defenses. We show that if there are sufficiently many potential attackers, the game has a unique Nash equilibrium in which the defender chooses to have almost no defenses and attacks almost never occur. This provides a new perspective on coordination problems and the necessity of refinements in regime change games.

Suggested Citation

  • Jann, Ole & Schottmüller, Christoph, 2021. "Regime change games with an active defender," Games and Economic Behavior, Elsevier, vol. 129(C), pages 96-113.
    • Handle: RePEc:eee:gamebe:v:129:y:2021:i:c:p:96-113
    DOI: 10.1016/j.geb.2021.05.008
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    More about this item

    Keywords

    Coordination; Global games; Panopticon; Regime change games; Transparency;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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