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Deadlock (game theory)

From Wikipedia, the free encyclopedia
Game with a dominant mutually most beneficial action
This article is about deadlocks in game theory. For the video game, seeDeadlock (video game).

Ingame theory,Deadlock is a game where the action that is mutually most beneficial is alsodominant. This provides a contrast to thePrisoner's Dilemma where the mutually most beneficial action is dominated. This makes Deadlock of rather less interest, since there is no conflict between self-interest and mutual benefit.On the other hand, deadlock game can also impact theeconomic behaviour and changes toequilibrium outcome in society.

General definition

[edit]
CD
ca, bc, d
de, fg, h

Any game that satisfies the following two conditions constitutes aDeadlock game: (1) e>g>a>c and (2) d>h>b>f. These conditions require thatd andD be dominant. (d,D) be of mutual benefit, and that one prefer one's opponent playc rather thand.

Like thePrisoner's Dilemma, this game has one uniqueNash equilibrium: (d,D).

Example

[edit]
CD
c1, 10, 3
d3, 02, 2

In this deadlock game, if Player C and Player D cooperate, they will get a payoff of 1 for both of them. If they both defect, they will get a payoff of 2 for each. However, if Player C cooperates and Player D defects, then C gets a payoff of 0 and D gets a payoff of 3.

Deadlock and social cooperation

[edit]

Even though deadlock game can satisfy group and individual benefit at mean time, but it can be influenced by dynamic one-side-offer bargaining deadlock model.[1]As a result, deadlock negotiation may happen for buyers. To deal with deadlock negotiation, three types of strategies are founded to break through deadlock and buyer's negotiation. Firstly, using power move to put a price on the status quo to create a win-win situation. Secondly, process move is used for overpowering the deadlock negotiation. Lastly, appreciative moves can help buyer to satisfy their own perspectives and lead to successful cooperation.

References

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  1. ^Ilwoo Hwang (May 2018)."A theory of bargaining deadlock"(PDF).Games and Economic Behavior.109:501–522.doi:10.1016/j.geb.2018.02.002.

External links and offline sources

[edit]
  • GameTheory.net
  • C. Hauert: "Effects of space in 2 x 2 games".International Journal of Bifurcation and Chaos in Applied Sciences and Engineering 12 (2002) 1531–1548.
  • Hans‐Ulrich Stark (August 3, 2010). "Dilemmas of partial cooperation".Evolution.64 (8):2458–2465.doi:10.1111/j.1558-5646.2010.00986.x.PMID 20199562.S2CID 205782687.
  • Ilwoo Hwang (May 2018). "A Theory of Bargaining Deadlock".Games and Economic Behavior.109:501–522.doi:10.1016/j.geb.2018.02.002.
  • Ayça Kaya; Kyungmin Kim (October 2018). "Trading Dynamics with Private Buyer Signals in the Market for Lemons".The Review of Economic Studies.85 (4):2318–2352.doi:10.1093/restud/rdy007.
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