Consider the following games. In each case, (i) identify which player can benefit from making a…

Consider the following games. In each case,

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(i) identify which player can benefit from making a
strategic move,

(ii) identify the nature of the strategic move
appropriate for this purpose,

(iii) discuss the concep‑ tual and practical
difficulties that will arise in the process of making this move credible, and

(iv) discuss whether and how the difficulties can be
overcome.

(a) The other countries of the European Monetary Union
(France, Ger‑ many, and so on) would like Britain to join the common
currency and the common central bank.

(b) The United States would like North Korea to stop
exporting mis‑ siles and missile technology to countries such as Iran and
would like China to join the United States in working toward this aim.

(c) The United Auto Workers would like U.S. auto
manufacturers not to build plants in Mexico and would like the U.S. government
to re‑ strict imports of autos made abroad. 

 

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