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Respond to the question: Probable but not certain outcome?

10/17/2000 03:40 PM by Walter;

You need more information to set up the game. I write some questions between ($ $).

Two countries support each other to join the European Union but only one can be admitted. ($Does that mean that they have two options: cooperate/no cooperate?$) Joining one would get more than when both join, since foreign investment that would otherwise go to other country would be diverted to the joining country. ($Who chooses what country joins the EC? Is it endogenous to the players? Why do you say that joining one would get more than when both join? you said that only one can be admitted.$) One can expect that in this case countries will run the campaign against each other's joining. But in that case if both will start such a campaign neither country will be invited to join ($One one hand, you say that the EC chooses a country. On the other hand, there is also a possibility that neither of them is accepted. What do you have in mind? Also, if I cooperate and you don't cooperate, who is accepted?, the player who does not cooperate?$). What is the solution? None of the country knows which one will be admitted after cooperative support. ($You can set payoffs such that you get the prisoners' dilemma result. If in the case in which players cooperate there is an exogenous probability of who is accepted, you write the expected payoff$).
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10/17/2000 10:58 AM by name withheld; Probable but not certain outcome

What if one of the options in Prisoners Dilemma matrix is not certain but given with some probability? [View full text and thread]