Peace war game

Genghis Khan's empire over time

Peace war game is 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.

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.^[3] "Provokable nice guy's" optimality depends on iterations. How many are necessary is likely tied to the payoff matrix and probabilities of choosing.^[4] 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.^[5]

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

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.
↑ 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

Topics in game theory

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

Equilibrium concepts	Nash equilibrium Subgame perfection Mertens-stable equilibrium Bayesian Nash equilibrium Perfect Bayesian equilibrium Trembling hand Proper equilibrium Epsilon-equilibrium Correlated equilibrium Sequential equilibrium Quasi-perfect equilibrium Evolutionarily stable strategy Risk dominance Core Shapley value Pareto efficiency Gibbs equilibrium 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 Screening game Cheap talk Zero-sum game Mechanism design Bargaining problem Stochastic game n-player game Large Poisson game Nontransitive game Global games Strictly determined game Potential game

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 Fair division Fair cake-cutting Cournot game Deadlock Diner's dilemma Guess 2/3 of the average Kuhn poker Nash bargaining game Prisoners and hats puzzle Trust game Princess and monster game Monty Hall problem Rendezvous problem

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

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

See also	All-pay auction Alpha–beta pruning Bertrand paradox Bounded rationality Combinatorial game theory Confrontation analysis Coopetition List of game theorists List of games in game theory No-win situation Topological game Tragedy of the commons Tyranny of small decisions

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Peace war game

See also

Notes