Deadlock (game theory)
{{Short description|Game with a dominant mutually most beneficial action}}
{{About|deadlocks in game theory|the video game|Deadlock (video game)}}
In game theory, Deadlock is a game where the action that is mutually most beneficial is also dominant. This provides a contrast to the Prisoner'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 the economic behaviour and changes to equilibrium outcome in society.
General definition
| class="wikitable" align=left style="margin:1em 1em 1em 0; font-size:95%;"
| ! C ! D |
| c
| a, b | c, d |
|---|
| d
| e, f | g, h |
Any game that satisfies the following two conditions constitutes a Deadlock game: (1) e>g>a>c and (2) d>h>b>f. These conditions require that d and D be dominant. (d, D) be of mutual benefit, and that one prefer one's opponent play c rather than d.
Like the Prisoner's Dilemma, this game has one unique Nash equilibrium: (d, D).
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Example
| class="wikitable" align=left style="margin:1em 1em 1em 0; font-size:95%;"
| ! C ! D |
| c
| 1, 1 | 0, 3 |
|---|
| d
| 3, 0 | 2, 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.
{{clear}}
Deadlock and social cooperation
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.{{cite journal |author=Ilwoo Hwang |title=A theory of bargaining deadlock |journal=Games and Economic Behavior |volume=109 |date=May 2018 |pages=501–522 |doi=10.1016/j.geb.2018.02.002|url=https://economics.sas.upenn.edu/sites/default/files/filevault/13-050.pdf }}
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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External links and offline sources
- [http://www.gametheory.net/dictionary/Games/Deadlock.html 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.
- {{cite journal |author=Hans‐Ulrich Stark |title=Dilemmas of partial cooperation |journal=Evolution |volume=64 |date=August 3, 2010 |issue=8 |pages=2458–2465 |doi=10.1111/j.1558-5646.2010.00986.x|pmid=20199562 |s2cid=205782687 }}
- {{cite journal |author=Ilwoo Hwang |title=A Theory of Bargaining Deadlock |journal=Games and Economic Behavior |volume=109 |date=May 2018 |pages=501–522 |doi=10.1016/j.geb.2018.02.002}}
- {{cite journal |author1=Ayça Kaya |author2=Kyungmin Kim |title=Trading Dynamics with Private Buyer Signals in the Market for Lemons |journal=The Review of Economic Studies |volume=85 |issue=4 |date=October 2018 |pages=2318–2352 |doi=10.1093/restud/rdy007}}
{{game theory}}
Category:Non-cooperative games
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