Abstract

Abstract In this paper two algorithms with the goal of generating the equilibrium set of the power allocation game first developed in Li and Morse [2017c] are proposed. Based on the first algorithm, the geometric property of the pure strategy Nash equilibrium set will be proven to be a collection of convex polytopes. The second, simulation-based, algorithm is developed to overcome the shortcoming of the first algorithm in terms of generating the equilibrium set efficiently and then making policy-relevant predictions based on the set. The second algorithm will be usefully applied to a real-world case study, which draws on the current crisis between North Korea and certain key players including the US and China.

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