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Types. The dollar game (divider and decider) As the decider, what would be your strategy to “win” Once the decider moves, the divider has no incentive to carry out any threats
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Types • The dollar game (divider and decider) • As the decider, what would be your strategy to “win” • Once the decider moves, the divider has no incentive to carry out any threats • If the decider would actually carry out some threat (even though it would not be in his best interest), the divider will make a split the decider will approve of. Otherwise, she will not • The decider’s “type” (resolved or unresolved) is private information
Game trees • Sometimes we can draw two game trees showing two different types of players. P1 may be resolved or unresolved, and P2 does not know which it P1 is
Reservations Points • The question might be thought of as, “how do you get another player to believe something about your reservation point” • It is easier to get another person to believe a truth than a falsehood
Trade Offs • Actors have interests. One interest is to avoid war. But they also want to gain resources and wield influence. • The further an actor moves her reservation point toward her optimal bargain, the more likely it is she will risk war. • States set reservation points based on three factors: • P(win) • E(costs) • Issue importance
Resolve • A players resolve determines her reservatio point (P(win) + e(costs) + issue = resolve) • Resolve is the will to continue fighting despite costs • How can states communicate resolve? • In order to avoid war but still get what you want, you need to move your adversary’s reservation point and break her resolve.
Coercive Bargaining • Reduce the amount of costs you expect • Increase the probability you will win • Increase the apparent importance of the issue • Increase the amount of costs the opponent expects • Decrease the probability the opponent will win • Decrease the issue importance to the opponent
Military Capabilities • The easiest way to manipulate p(win) and e(costs) is to increase military strength • This may not be practical for specific crises • This may lead to an arms race and a security dilemma
Verbal Statements • The most common way of manipulating perceived issue importance is through verbal statements, threats, proclamations • Commitment problems
Commitments • Talk is cheap • A successful commitment has three elements • Committal to the act • Communication that you are committed to the adversary • A decision by the adversary to back down or concede
Commitment vs. Open Options • Commitment makes it more likely that you get your way • It also makes it more likely you end up in a war • Keeping open options allows for flexibility and lets you avoid war • But it makes your bargaining position weaker • More commitment = more risk
Irrationality • States may have incentives to act “crazy” • This may do more to deter threats than to make own threats more credible • It can also backfire
A Puzzle • War gives us information • 5% of dyads are responsible for about 50% of wars • Why do some states fight over and over? • Learning theory • Domestic politics • Cognitive psychology
Learning (Leng) • The type of strategy used in one conflict affects future interactions • If an aggressive strategy is used successfully, the state will continue to use aggressive behavior in the future • If a state loses a conflict, it may learn that it ought to be more aggressive next time • Add this to the bitterness caused by a loss and …
Domestic Politics (Colaresi) • Leaders who are dovish toward rivals are punished electorally • Leaders who are hawkish toward rivals are rewarded electorally • Leaders are also punished for backing down from a crisis • So domestic politics may push a leader toward a crisis and prevent her from backing down
Cognitive Errors • People may strive to be rational, but human capacity for rational thought is limited • The world is a complex place and people may see what they expect rather than what is there
Cognitive “Shortcuts” • Primacy Effect • Opinions are formed quickly • Opinions are formed based on initial information only • Recency Effect • The most recent event stand out • Fighting the last war • Bounded Rationality • Satisficing instead of optimizing • Take the first option that is “good enough”
Attribution Theory • Based on concept of “self” and “other” • For self • Good behavior is dispositional • Bad behavior is situational • For other • Bad behavior is dispositional • Good behavior is situational
Prospect Theory • In the “domain of gains” actors are risk averse • In the “domain of losses” actors are risk acceptant • Even Howie Mandel knows this • What are some ways that prospect theory might affect bargaining?
Cognitive dissonance • Cognitive dissonance • People hold on to “truths” about themselves • Updating those beliefs in a negative way is painful • People want to be right • Overconfidence • Justification of actions