Wednesday, May 17, 2006

Incentives in a Nuclear Game

As a student of economics, I would like to ask fellow economists to address the issue of incentives in nuclear discussion between Iran and USA. I have assumed that I cannot figure
out what is the objective here. However let's assume that all players use the best possible response. Could we figure out what they are maximizing by studying the consequences of their actions?
This also gives us a good opportunity to explore the role of perspective of information in decision making, e.g. It seems one perception in Iran is that USA could not afford another military engagement so the White House would not attack Iran. However many on this side of ocean believe that a military attack is plausible. What you say? May be a clear analysis could help us all to see things better.

No comments: