Modeling Chinese Economic Expansion using Game Theory
Abstract
As China continues to gain economic influence rivaling that of the United States, does the United States have reason to be concerned? The United States has typically encouraged the prosperity of partner United Nations members, but are China's economic policies in line with the best interests of the United States? In an attempt to answer these questions, the author used game theory principles to design a model game outlining the interactions between the US and China. This model was based on a review of both US and Chinese foreign policy, with particular emphasis on Chinas Belt and Road Initiative and the US response. Rather than use only a single classic game to explain the interaction, the author merged the mechanics of multiple games to create a unique game, which included several rational decisions for each party. Possible choices included cooperation, competition, hostile escalation, and resignation. Two sub-games reduced the complexity of the game and accompanied the main game, and the researcher analyzed all three games to determine the best player strategies using Nash equilibriums. The results showed that the US - China game had a pure equilibrium point, providing a forecast for what decisions strategies would be prudent for each side.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 08, 2018
- Accession Number
- AD1176882
Entities
People
- Rex L. Iii Brooks
Organizations
- Marine Corps University