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On the Concept of Equilibrium in Sanctions and Countersanctions in a Differential Game

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Listed:
  • Vladislav I. Zhukovskiy

    (Faculty of Computational Mathematics and Cybernetics, Lomonosov Moscow State University, Moscow 119991, Russia)

  • Lidiya V. Zhukovskaya

    (Central Economics and Mathematics, Institute Russian Academy of Sciences, Moscow 117418, Russia)

Abstract

This paper develops the methodology for modeling decision processes in complex controlled dynamic systems. The idea of balancing such systems (driving them to equilibrium) is implemented, and a new mechanism for the equilibria’s stability is proposed. Such an approach involves economic–mathematical modeling jointly with systems analysis methods, economics, law, sociology, game theory, management, and performance measurement. A linear-quadratic positional differential game of several players is considered. Coefficient criteria under which the game has an equilibrium in sanctions and countersanctions and, simultaneously, no Nash equilibrium are derived. The economic and legal model of active equilibrium is studied through the legal concept of sanctions, which enlarges the practical application of this class of problems.

Suggested Citation

  • Vladislav I. Zhukovskiy & Lidiya V. Zhukovskaya, 2023. "On the Concept of Equilibrium in Sanctions and Countersanctions in a Differential Game," Mathematics, MDPI, vol. 11(20), pages 1-22, October.
    • Handle: RePEc:gam:jmathe:v:11:y:2023:i:20:p:4402-:d:1265654
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    References listed on IDEAS

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    1. Mehmet Onder, 2019. "Regime Type, Issue Type and Economic Sanctions: The Role of Domestic Players," Economies, MDPI, vol. 8(1), pages 1-18, December.
    2. Tyler Kustra, 2023. "Economic sanctions as deterrents and constraints," Journal of Peace Research, Peace Research Institute Oslo, vol. 60(4), pages 649-660, July.
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    4. Dawid Walentek, 2022. "Reputation or interaction: What determines cooperation on economic sanctions?," International Interactions, Taylor & Francis Journals, vol. 48(6), pages 1121-1143, November.
    5. Dong, Yan & Li, Chunding, 2018. "Economic sanction games among the US, the EU and Russia: Payoffs and potential effects," Economic Modelling, Elsevier, vol. 73(C), pages 117-128.
    6. Afesorgbor, Sylvanus Kwaku, 2019. "The impact of economic sanctions on international trade: How do threatened sanctions compare with imposed sanctions?," European Journal of Political Economy, Elsevier, vol. 56(C), pages 11-26.
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