Axelord’s [(1970), Conflict of Interest, Markham Publishers, Chicago] index of conflict in 2 × 2 games with two pure strategy equilibria has the property that a reduction in the cost of holding out corresponds to an increase in conflict. This article takes the opposite view, arguing that if losing becomes less costly, a player is less likely to gamble to win, which means that conflict will be less frequent. This approach leads to a new power index and a new measure of stubbornness, both anchored in strategic reasoning. The win probability defined as power constitutes an equilibrium refinement which differs from Harsanyi and Selten’s [(1988), A General Theory of Equilibrium Selection in Games, MIT Press, Cambridge] refinement. In contrast, Axelrod’s approach focuses on preferences regarding divergences from imaginary outmost rewards that cannot be obtained jointly. The player who is less powerful in an asymmetric one-shot game becomes more powerful in the repeated game, provided he or she values the future sufficiently more than the opponent. This contrasts with the view that repetition induces cooperation, but conforms with the expectation that a more patient player receives a larger share of the pie. Copyright Springer Science+Business Media, LLC 2007
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 62 (2007) Issue (Month): 2 (March) Pages: 135-160 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: