A Framework for Computational Strategic Analysis: Applications to Iterated Interdependent Security Games
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game theory
prisoner’s dilemma
interdependent security games
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Finance and Financial Management
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Past work on tournaments in iterated prisoner’s dilemma and the evolution of cooperation spawned by Axelrod has contributed insights about achieving cooperation in social dilemmas, as well as a framework for strategic analysis in such settings. We present a broader, more extensive framework for strategic analysis in general games, which we illustrate in the context of a particular social dilemma encountered in interdependent security settings. Our framework is fully quantitative and computational, allowing one to measure the quality of strategic alternatives across a series of measures, and as a function of relevant game parameters. Our special focus on performing analysis over a parametric landscape is motivated by public policy considerations, where possible interventions are modeled as affecting particular parameters of the game. Our findings qualify the touted efficacy of the Tit-for-Tat strategy, demonstrate the importance of monitoring, and exhibit a phase transition in cooperative behavior in response to a manipulation of policy-relevant parameters of the game.