IDEAS home Printed from https://ideas.repec.org/p/bol/bodewp/563.html
   My bibliography  Save this paper

Is America Unrivaled? A Repeated Game Analysis

Author

Listed:
  • L. Lambertini

Abstract

I use a strategic setup to investigate whether unipolarism can indeed persist as a long run equilibrium. In a three-country world, a global power may subsidise two satellites so as to incentivate them not to invest to build up a coalition against it. I single out the conditions under which the one-shot game is a Prisoners Dilemma where no subsidy is paid and the coalition arises at equilibrium. Then, I revert to the infinitely repeated game and apply the Perfect Folk Theorem to characterise the critical thresholds of discount factor sustaining unipolarism at the subgame perfect equilibrium.

Suggested Citation

  • L. Lambertini, 2006. "Is America Unrivaled? A Repeated Game Analysis," Working Papers 563, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:563
    as

    Download full text from publisher

    File URL: http://amsacta.unibo.it/4724/1/563.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(1), pages 1-12.
    2. Stergios Skaperdas & Constantinos Syropoulos, 2001. "Guns, Butter, and Openness: On the Relationship between Security and Trade," American Economic Review, American Economic Association, vol. 91(2), pages 353-357, May.
    3. Axelrod, Robert, 1981. "The Emergence of Cooperation among Egoists," American Political Science Review, Cambridge University Press, vol. 75(2), pages 306-318, June.
    4. R. Harrison Wagner, 2004. "Bargaining, War, and Alliances," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(3), pages 215-231, July.
    5. Drew Fudenberg & Eric Maskin, 2008. "The Folk Theorem In Repeated Games With Discounting Or With Incomplete Information," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 11, pages 209-230, World Scientific Publishing Co. Pte. Ltd..
    6. Powell, Robert, 1993. "Guns, Butter, and Anarchy," American Political Science Review, Cambridge University Press, vol. 87(1), pages 115-132, March.
    7. Clifford J. Carrubba & Anand Singh, 2004. "A Decision Theoretic Model of Public Opinion: Guns, Butter, and European Common Defense," American Journal of Political Science, John Wiley & Sons, vol. 48(2), pages 218-231, April.
    8. Abreu, Dilip, 1986. "Extremal equilibria of oligopolistic supergames," Journal of Economic Theory, Elsevier, vol. 39(1), pages 191-225, June.
    9. Solomon William Polachek, 1980. "Conflict and Trade," Journal of Conflict Resolution, Peace Science Society (International), vol. 24(1), pages 55-78, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kaplow, Louis & Shapiro, Carl, 2007. "Antitrust," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 15, pages 1073-1225, Elsevier.
    2. Chari, V V & Kehoe, Patrick J, 1990. "Sustainable Plans," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 783-802, August.
    3. Peter S. Fader & John R. Hauser, 1988. "Implicit Coalitions in a Generalized Prisoner's Dilemma," Journal of Conflict Resolution, Peace Science Society (International), vol. 32(3), pages 553-582, September.
    4. Spagnolo, Giancarlo, 2005. "Managerial incentives and collusive behavior," European Economic Review, Elsevier, vol. 49(6), pages 1501-1523, August.
    5. Alexis Louaas, 2021. "Morality and Equality from Rationality Alone - A repeated game approach of contractarianism," Working Papers hal-02948051, HAL.
    6. Baldelli, Serena & Lambertini, Luca, 2006. "Price vs quantity in a duopoly supergame with Nash punishments," Research in Economics, Elsevier, vol. 60(3), pages 121-130, September.
    7. George J. Mailath & Volker Nocke & Lucy White, 2017. "When And How The Punishment Must Fit The Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58(2), pages 315-330, May.
    8. Andersson, Ola, 2006. "Bargaining in Collusive Markets," Working Papers 2006:21, Lund University, Department of Economics.
    9. Kimmo Berg & Markus Kärki, 2018. "Critical Discount Factor Values in Discounted Supergames," Games, MDPI, vol. 9(3), pages 1-17, July.
    10. Colombo, Luca & Labrecciosa, Paola, 2006. "Optimal punishments with detection lags," Economics Letters, Elsevier, vol. 92(2), pages 198-201, August.
    11. Carlos Seiglie, 2016. "Openness of the economy, terms of trade, and arms," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 748-759, January.
    12. Miguel Aramendia, 2008. "Individual best response in the repeated Cournot model," Journal of Economics, Springer, vol. 93(3), pages 293-304, April.
    13. Ivaldi, Marc & Jullien, Bruno & Rey, Patrick & Seabright, Paul & Tirole, Jean, 2003. "The Economics of Tacit Collusion," IDEI Working Papers 186, Institut d'Économie Industrielle (IDEI), Toulouse.
    14. F. Delbono & L. Lambertini, 2016. "On Globally Optimal Punishments in the Repeated Cournot Game," Working Papers wp1091, Dipartimento Scienze Economiche, Universita' di Bologna.
    15. Colombo, Luca & Labrecciosa, Paola, 2006. "The suboptimality of optimal punishments in Cournot supergames," Economics Letters, Elsevier, vol. 90(1), pages 116-121, January.
    16. Luca Lambertini, 2000. "Technology and Cartel Stability under Vertical Differentiation," German Economic Review, Verein für Socialpolitik, vol. 1(4), pages 421-442, November.
    17. Damania, Richard & Fredriksson, Per G., 2000. "On the formation of industry lobby groups," Journal of Economic Behavior & Organization, Elsevier, vol. 41(4), pages 315-335, April.
    18. Takashi Kamihigashi & Taiji Furusawa, 2007. "Global Dynamics in Infinitely Repeated Games with Additively Separable Continuous Payoffs," Discussion Paper Series 210, Research Institute for Economics & Business Administration, Kobe University.
    19. Lambertini, Luca & Sasaki, Dan, 2001. "Marginal costs and collusive sustainability," Economics Letters, Elsevier, vol. 72(1), pages 117-120, July.
    20. Pedro Dal Bo, 2002. "Three Essays on Repeated Games," Levine's Working Paper Archive 618897000000000038, David K. Levine.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:563. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dipartimento Scienze Economiche, Universita' di Bologna (email available below). General contact details of provider: https://edirc.repec.org/data/sebolit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.