Evolutionary game of international trade network based on trade policy differences

Area of Science:

• Economics
• Game Theory
• Network Science

Background:

• International trade cooperation is significantly influenced by varying national trade policies.
• Existing game models often oversimplify complex trade relationships and strategies.

Purpose of the Study:

• To investigate the impact of trade policy differences on international trade cooperation using an evolutionary game model.
• To analyze the effects on game payoffs for individual countries and the global trading network.

Main Methods:

• Development of an evolutionary game model incorporating complex networks for game relationships.
• Utilization of mathematical analysis and computer simulations to study trade policy dynamics.

Main Results:

• Decreasing tolerance for fair trade ('t') fails to eliminate opportunistic policies and reduces overall game payoffs.
• Dynamic adjustment of trade relations enhances country and network payoffs, mitigating negative impacts of reduced tolerance.
• Win-win trade policies are essential for maximizing global trade network payoffs and ensuring equitable benefit distribution.

Conclusions:

• Opportunistic trade policies, even with reduced tolerance, are detrimental to global trade.
• Adaptive trade strategies and mutually beneficial policies are key to sustainable international trade cooperation and network health.