Abstract
This paper presents a game-theoretic rationale for the beneficial effect of a
common enemy on cooperation. In a defence game against a common
natural threat, the value of the public good of defence is equal to the sum of
the players’ defensive efforts. The game therefore takes the form of a
prisoner’s dilemma, leading to free-riding. When the same defence game is
played against a common enemy, the value of the public good of defence is
equal to the smallest defensive effort. The game now takes the form of a
stag hunt, so that a cooperative equilibrium becomes possible. For this
reason, an informed and benevolent government may not want to inform
the public that it is facing a common natural threat rather than a common
enemy. At the same time, the common enemy has an incentive to mimic
nature, and perform only random rather than targeted attacks.
common enemy on cooperation. In a defence game against a common
natural threat, the value of the public good of defence is equal to the sum of
the players’ defensive efforts. The game therefore takes the form of a
prisoner’s dilemma, leading to free-riding. When the same defence game is
played against a common enemy, the value of the public good of defence is
equal to the smallest defensive effort. The game now takes the form of a
stag hunt, so that a cooperative equilibrium becomes possible. For this
reason, an informed and benevolent government may not want to inform
the public that it is facing a common natural threat rather than a common
enemy. At the same time, the common enemy has an incentive to mimic
nature, and perform only random rather than targeted attacks.
Original language | English |
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Place of Publication | Utrecht |
Publisher | UU USE Tjalling C. Koopmans Research Institute |
Number of pages | 17 |
Publication status | Published - 2012 |
Publication series
Name | Discussion Paper Series / Tjalling C. Koopmans Research Institute |
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No. | 24 |
Volume | 12 |
ISSN (Electronic) | 2666-8238 |
Keywords
- Common Enemy Effect
- Defence Games
- Prisoner’s Dilemma
- Stag Hunt