Peace war game

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Genghis Khan's empire over time

An iterated game originally played in academic groups and by computer simulation for years to study possible strategies of cooperation and aggression.^[1] As peace makers became richer over time it became clear that making war had greater costs than initially anticipated. The only strategy that acquired wealth more rapidly was a "Genghis Khan", a constant aggressor making war continually to gain resources. This led to the development of the "provokable nice guy" strategy, a peace-maker until attacked.^[2] Multiple players continue to gain wealth cooperating with each other while bleeding the constant aggressor. Such actions led in essence to the development of the Hanseatic League for trade and mutual defense following centuries of Viking depredation.^[3]

Hanseatic trade and defense routes

The peace war game is a variation of the iterated prisoner's dilemma in which the decisions (Cooperate, Defect) are replaced by (Peace, War). Strategies remain the same with reciprocal altruism, "Tit for Tat", or "provokable nice guy" as the best deterministic one. This strategy is simply to make peace on the first iteration of the game; after that, the player does what his opponent did on the previous move. A slightly better strategy is "Tit for Tat with forgiveness". When the opponent makes war, on the next move, the player sometimes makes peace anyway, with a small probability. This allows an escape from wasting cycles of retribution, a motivation similar to the Rule of Ko in the game of Go. "Tit for Tat with forgiveness" is best when miscommunication is introduced, when one's move is incorrectly reported to the opponent. A typical payoff matrix for two players (A, B) of one iteration of this game is:

A.. B:	Peace	War
Peace	( 2, 2)	( 0, 3)
War	( 3, 0)	( 1, 1)

Here a player's resources have a value of 2, half of which must be spent to wage war. In this case, there exists a Nash equilibrium, a mutually best response for a single iteration, here (War, War), by definition heedless of consequences in later iterations.^[4] "Provokable nice guy's" optimality depends on iterations. How many are necessary is likely tied to the payoff matrix and probabilities of choosing.^[5] A subgame perfect version of this strategy is "Contrite Tit-for-Tat" which is to make peace unless one is in "good standing" and one's opponent is not. Good ("standing" assumed) means to make peace with good opponents, make peace when bad, or make war when good and opponent is not.^[6]

Notes

↑ Shy, O., 1996, Industrial Organization: Theory and Applications, Cambridge, Mass.: The MIT Press.
↑ N.R. Miller, "Nice Strategies Finish First: A Review of The Evolution of Cooperation", Politics and the Life Sciences, Association for Politics and the Life Sciences, 1985.
↑ from conversation with NCSU Professor of Sociology Kay M. Troost
↑ The concept is named for its originator, John Forbes Nash, about whom a book, A Beautiful Mind, and popular film were produced.
↑ Industrial Organization - economics lecture in which the Peace War Game is an example.
↑ Herbert Gintis, Game Theory Evolving: A Problem-centered Introduction to Modeling Strategic Behavior, Princeton University Press, 2000, p.133

"He who is skilled in war subdues the enemy without fighting." - Sun Tzu, The Art of War, III.2

v t e Topics in game theory

Definitions	Normal-form game Extensive-form game Graphical game Cooperative game Succinct game Information set Hierarchy of beliefs Preference

Equilibrium concepts	Nash equilibrium Subgame perfection Mertens-stable equilibrium Bayesian-Nash Perfect Bayesian Trembling hand Proper equilibrium Epsilon-equilibrium Correlated equilibrium Sequential equilibrium Quasi-perfect equilibrium Evolutionarily stable strategy Risk dominance Core Shapley value Pareto efficiency Quantal response equilibrium Self-confirming equilibrium Strong Nash equilibrium Markov perfect equilibrium

Strategies	Dominant strategies Pure strategy Mixed strategy Tit for tat Grim trigger Collusion Backward induction Forward induction Markov strategy

Classes of games	Symmetric game Perfect information Simultaneous game Sequential game Repeated game Signaling game Cheap talk Zero-sum game Mechanism design Bargaining problem Stochastic game Large Poisson game Nontransitive game Global games

Games	Prisoner's dilemma Traveler's dilemma Coordination game Chicken Centipede game Volunteer's dilemma Dollar auction Battle of the sexes Stag hunt Matching pennies Ultimatum game Rock-paper-scissors Pirate game Dictator game Public goods game Blotto games War of attrition El Farol Bar problem Cake cutting Cournot game Deadlock Diner's dilemma Guess 2/3 of the average Kuhn poker Nash bargaining game Screening game Prisoners and hats puzzle Trust game Princess and monster game Monty Hall problem

Theorems	Minimax theorem Nash's theorem Purification theorem Folk theorem Revelation principle Arrow's impossibility theorem

Key figures	Kenneth Arrow Robert Aumann Kenneth Binmore Samuel Bowles Melvin Dresher Merrill M. Flood Drew Fudenberg Donald B. Gillies John Harsanyi Leonid Hurwicz David K. Levine Daniel Kahneman Harold W. Kuhn Eric Maskin Jean-François Mertens Paul Milgrom Oskar Morgenstern Roger Myerson John Nash John von Neumann Ariel Rubinstein Thomas Schelling Reinhard Selten Herbert Simon Lloyd Shapley John Maynard Smith Jean Tirole Albert W. Tucker William Vickrey Robert B. Wilson Peyton Young

See also	Tragedy of the commons Tyranny of small decisions All-pay auction List of games in game theory Confrontation analysis List of game theorists Combinatorial game theory

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