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Abstract

Game theory, a mathematical framework for studying strategic interactions among rational decision-makers, offers valuable insights when applied to the complex landscape of China-US international trade. This paper explores two classic game theory models, the Prisoner’s Dilemma and the Tit-for-Tat Strategies, to shed light on the strategies and potential outcomes of this crucial global economic relationship.

Introduction

Game theory, developed as a powerful tool for analyzing decision-making in strategic situations, has found wide application in various fields, including international relations and economics. The interactions between China and the United States in the realm of international trade are of paramount importance due to their global economic significance. By employing game theory models such as the Prisoner’s Dilemma and the Tit-for-Tat Strategies, we can gain a deeper understanding of the strategies and potential outcomes within this dynamic relationship.