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A Game Theory Interpretation of the Post-Communist Evolution

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  • Dimiter Ialnazov
  • Nikolay Nenovsky

Abstract

Our hypothesis is that both the transition phases and the diversity of trajectories of post-communist countries are the result of a significant difference in actors' strategic behavior. If we apply game theory to the socioeconomic context of post-communist evolution, this difference reflects the two main models of cooperation, namely the prisoner's dilemma and the stag hunter. The prisoner's dilemma, which becomes the dominant strategy under the conditions of high social heterogeneity and broken informational channels, implies that it is profitable not to cooperate. Under the stag hunter model — a model involving a common goal and a common project — cooperative strategies are more advantageous. The various post-communist countries in different transition phases can be approximated to either one of those two games — the prisoner's dilemma or the stag hunter. The alternation of the games is conditional on the existence of external and internal social anchors.

Suggested Citation

  • Dimiter Ialnazov & Nikolay Nenovsky, 2011. "A Game Theory Interpretation of the Post-Communist Evolution," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(1), pages 41-56.
  • Handle: RePEc:mes:jeciss:v:45:y:2011:i:1:p:41-56 DOI: 10.2753/JEI0021-3624450103
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    References listed on IDEAS

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    1. Jànos Kornai, 2000. "What the Change of System from Socialism to Capitalism Does and Does Not Mean," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 27-42, Winter.
    2. Nikolay Nenovsky, 2010. "Monetary Regimes In Post-Communist Countries Some Long-Term Reflections," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 217-234, november.
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    5. Aslund,Anders, 2002. "Building Capitalism," Cambridge Books, Cambridge University Press, number 9780521805254, November.
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    7. Nikolay Nenovsky & S. Statev, 2006. "Introduction," Post-Print halshs-00260898, HAL.
    8. Andrei Yakovlev, 2004. "Evolution of corporate governance in Russia: government policy vs. real incentives of economic agents," Post-Communist Economies, Taylor & Francis Journals, vol. 16(4), pages 387-403.
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    Cited by:

    1. Nikolay NENOVSKY & Kiril TOCHKOV & Camelia TURCU, 2011. "From Prosperity to Depression: Bulgaria and Romania (1996/97 ??? 2010)," William Davidson Institute Working Papers Series wp1018, William Davidson Institute at the University of Michigan.

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