Strategic Interaction Research Articles

Encourage or Reject Employee Involvement: Value Creation in Human Resource Management in the AI Era—An Evolutionary Game Analysis of Enterprises and Employees

In the context of globalization and rapid technological advancement, the introduction of Artificial Intelligence (AI) has brought new opportunities and challenges to Human Resource Management (HRM). This study constructs an evolutionary game model to explore the strategy choices and evolutionary paths of enterprises and employees in HRM value co-creation with AI involvement. We numerically simulated the dynamic evolution of strategies under different scenarios, revealing the equilibrium characteristics of strategic interactions between enterprises and employees in the AI context. The study finds that, first, the evolutionary game system between enterprises and employees converges to two equilibrium points: {cooperation, active} and {non-cooperation, passive}. Overall, the probability of the former is 2.39 times greater than that of the latter. Second, higher initial probabilities of cooperation and active involvement, along with lower costs for cooperation and active involvement, facilitate the system’s evolution towards the {cooperation, active} equilibrium. Third, enterprises are more sensitive to the benefit distribution ratio than employees. This study provides theoretical support for effectively conducting HRM practices in the AI era through systematic analysis of HRM value co-creation behavior, along with practical policy recommendations.

No-Regret Learning and Equilibrium Computation in Quantum Games

As quantum processors advance, the emergence of large-scale decentralized systems involving interacting quantum-enabled agents is on the horizon. Recent research efforts have explored quantum versions of Nash and correlated equilibria as solution concepts of strategic quantum interactions, but these approaches did not directly connect to decentralized adaptive setups where agents possess limited information. This paper delves into the dynamics of quantum-enabled agents within decentralized systems that employ no-regret algorithms to update their behaviors over time. Specifically, we investigate two-player quantum zero-sum games and polymatrix quantum zero-sum games, showing that no-regret algorithms converge to separable quantum Nash equilibria in time-average. In the case of general multi-player quantum games, our work leads to a novel solution concept, that of the separable quantum coarse correlated equilibria (QCCE), as the convergent outcome of the time-averaged behavior no-regret algorithms, offering a natural solution concept for decentralized quantum systems. Finally, we show that computing QCCEs can be formulated as a semidefinite program and establish the existence of entangled (i.e., non-separable) QCCEs, which are unlearnable via the current paradigm of no-regret learning.

The Role of Russia and China in the Confrontation with the United States

The present article analyzes the interstate rivalry between the United States and China, as well as Russia's role in international relations in general. The study touches upon several key aspects, including the evolution of U.S.-China relations, the current crisis in bilateral relations, and the strategic interaction between Russia and China against the expansion of the United States and the collective West. The article focuses on the possibility of a direct military clash between the U.S. and China and analyzes the likelihood of Russia's involvement in such a conflict. The aim of the study was to analyze U.S.-China contradictions and the role of Russia and China in potential and actual conflicts involving Western countries. The author draws several important conclusions. First, the successful actions of the Russian armed forces in Ukraine undermine the plans of the U.S. and the West, leading to attempts to "freeze" the conflict and restore Ukraine's military potential. Second, tensions in the Indo-Pacific region and the strengthening of alliances directed against China reinforce the need for Russia and the PRC to come closer together. Third, mutual support and security cooperation between Russia and China are key to ensuring stability on their common border and the formation of a just world order. The author calls for increased joint efforts between Russia and China within the framework of international organizations such as the SCO, CSTO, and BRICS to ensure security and stability in Greater Eurasia.

Seeing Through a “Nuclear” Glass Darkly: Envisioning Irreversible Nuclear Disarmament in the Middle East

ABSTRACT Applying the concept of “Irreversible Nuclear Disarmament” (IND) to the Middle East presents several challenges. Conceptually, the key frameworks for addressing the nuclear challenge in the region – namely the establishment of a zone free from all weapons of mass destruction in the Middle East (MEWMDFZ) – lacks a robust disarmament pillar to anchor IND. A further challenge is structural and relates to the markedly different nuclear context prevailing in the Middle East to that which governed the evolution of the IND concept. Although still at a nascent stage, the conceptual and political frameworks underpinning irreversibility at the global level have evolved within the relatively stable context of strategic interactions between the Nuclear Weapons States and a well-defined global discourse regarding nuclear arms control and disarmament. Attempting to transpose frameworks of irreversibility as they have developed in this relatively stable context to the more complex, unstable and fluid regional setting of the Middle East is fraught with difficulty. This paper presents a “first-cut” attempt to address these challenges. It argues that the most viable approach for applying IND to the Middle East is through a regional multilateral framework embedded in the MEWMDFZ. However, the zone framework as it has been formulated thus far, requires further development. Specifically, there is a need to incorporate a viable disarmament pillar, as well as provisions aimed at mitigating regional nuclear hedging and latency dynamics in order to provide for a more conducive regional nuclear environment to achieve high levels of irreversibility.

Supervision mechanism of integrated construction consultancy services in China: tripartite game analysis

PurposeMegaprojects contribute greatly to China’s socio-economic development. However, the diverse stakeholders of megaprojects tend to be prone to conflict and plunge the project into lower performance than expected. This study aims to investigate (1) the optimal supervision mechanism under direct supervision of the owner and (2) the optimal indirect supervision mechanism of the owner, with involvement of integrated construction consultancy (ICC) in supervision and considerations into the impact of collusion between the ICC and the general contractor on supervision efficiency.Design/methodology/approachThis study applies the principal–agent theory and game theory to design effective incentive and punishment mechanisms for direct and indirect supervision by the owner. Through the theoretical framework of game theory, it analyses the strategic interactions between the owner, the ICC and the general contractor, and evaluates the effectiveness of various supervision mechanisms based on Nash equilibrium theory.FindingsThe results showed adopting the direct supervision mechanism when the probability of the general contractor’s opportunistic behavior being detected was higher or the occurrence had a greater impact on the owner. However, the increase in supervision cost would reduce the motivation of owner’s direct supervision and prompt the owner to choose the indirect supervision mechanism. Additionally, the indirect supervision mechanism was more likely to inhibit the collusion between the ICC and the general contractor. Thus, increasing penalties for ICC would result in improved supervision of ICC, thereby improving the benefits to the owner.Originality/valueThis study examines the dynamic interaction between the owner, the general contractor and the ICC. The study establishes a game tree and game matrix based on principal–agent theory, and analyses direct and indirect supervision models to determine the Nash equilibrium and optimal supervision strategy that is in the best interest of the owner. The study advocates for improved management and supervision mechanisms and argues that tailored supervision mechanisms can significantly improve the performance of megaprojects, which is well validated in megaprojects in China.

Social network analysis of heterogeneous subjects driving spatial commercialization of traditional villages: A case study of Tanka Fishing Village in Lingshui Li Autonomous county, China

Rural spatial commercialization has emerged as a focal point of interest in the field of rural geography. This study, Taking Tanka Fishing Village of Xincun Town in Lingshui Autonomous County of Hainan Province as a case, and based on the data and materials collected from field investigation and semi-structured questionnaire interview, analyzed the evolution process and characteristics of spatial commercialization, and examined the social network relationships and its underlying mechanism driven by multiple heterogeneous subjects utilizing Social Network Analysis. The aim is to provide practical guidance for the industrial transformation, upgrading, and preservation utilization of Tanka Fishing Village, as well as other traditional villages with similar profiles. The findings indicate that, firstly, as rural spaces transition from productivism to post-productivism and multi-functional countryside, the spatial commercialization of Tanka Fishing Village has also undergone a transformation from being predominantly fisheries to a fusion of fisheries and tourism, and subsequently to an integration of fisheries, tourism and culture. Secondly, the evolution of spatial commercialization within Tanka Fishing Village is a practical process where various heterogeneous subjects, including governments, businesses, village committees, Tanka people, and tourists, establish social relationship networks through a series of negotiations and strategic interactions. The social network relationship of heterogeneous subjects has gradually shifted from an ‘enterprise-driven cluster network’ to a ‘government-led tight network’ and ultimately to a ‘relatively balanced network driven by rural talents’. The role of external heterogeneous subjects, such as enterprises and government departments, in the social networks has progressively weakened, whereas the importance of internal heterogeneous subjects, including social groups and rural talents, has correspondingly increased. This shift has fortified the endogenous momentum of spatial commercialization in Tanka Fishing Village. Ultimately, strengthening government policy guidance, fostering innovative business models, encouraging villager participation, and refining the benefit-sharing mechanism are crucial strategies for promoting the sustainable commercial development and preservation of Tanka Fishing Village in Lingshui Autonomous County, China.

Threshold Protocol Game on Graphs with Magic Square-Generalization Labelings

Graphical games describe strategic interactions among a specified network of players. The threshold protocol game is a graphical game that models the adoption of a lesser-used product in a population when individuals benefit by using the same product. The threshold protocol game has historically been considered using infinite, simple graphs. In general, however, players might value some relationships more than others or may have different levels of influence in the graph. These traits are described by weights on graph edges or vertices, respectively. Relative comparisons on arbitrarily weighted graphs have been studied for a variety of graphical games. Alternatively, graph labelings are functions that assign values to the edges and vertices of graphs based on a particular set of rules. This work demonstrates that the outcome of the threshold protocol game can be characterized on a magic square-generalization labeled graph. There are a variety of graph labelings that generalize the concept of magic squares. In each, the labels on similar sets of graph elements sum to a constant. The constant sums of magic square-generalization labelings mean that each player experiences a constant level of influence without needing to specify the value of players relative to one another. The game outcome is compared across different types and features of labelings.

Global public goods, fiscal policy coordination, and welfare in the world economy

A two-region endogenous growth model of the world economy with local and global public goods is used to study strategic interactions between national policymakers. Distortionary taxes are used to finance infrastructure investment at home and generate resources for vaccine production by a global fund. While the global public good is nonexcludable, it is partially rival. Optimal tax rates under cooperation and noncooperation are solved for analytically, under both financial autarky and openness, and numerical experiments are performed to evaluate the welfare gain from cooperation. Whether optimal levies are higher or lower under cooperation, and the magnitude of welfare gains, depend on the degree of integration of capital markets, the existence of a direct trade-off between expenditure components, and the nature of the tax base. When the health levy takes the form of a capital or wealth tax, cooperation is welfare-improving under both autarky and financial openness, but enforcement and collection costs may narrow the scope of taxation under all policy regimes.

Game Theory in Business: Strategic Decision-Making for Competitive Advantage

Game theory serves as an analytical framework for understanding strategic interactions among rational decision-makers in business. This paper explores the application of game theory in business strategy, focusing on how companies use game-theoretic models to enhance decision-making and gain a competitive advantage in complex markets. The paper includes case studies of companies across different industries, such as Infosys, competition between the firms like Apple and Samsung in the global smartphone market, Amazon and Flipkart in the e-commerce sector, and Coca-Cola and Pepsi in the soft drinks industry. Each case study demonstrates the relevant use of game theory in real-world business scenarios,and shows how firms use game theory models, such as Nash equilibrium, mixed strategies, and repeated games, to navigate competitive pressures, optimize pricing, and anticipate rival actions. The paper concludes that game theory is an essential tool for strategic planning, allowing firms to anticipate competitor moves and react effectively.

A Fuzzy Multi-Criteria Decision-Making Approach for Agricultural Land Selection

Decision-making involves selecting the best alternative based on evaluation criteria while considering environmental impacts. The translation of environmental factors into quantifiable mathematical expressions is challenging due to the inherent uncertainties. Decision-makers can address the subjective characteristics of alternatives by incorporating fuzzy set theory into decision-making processes where uncertainty and ambiguity exist. Game theory is introduced as another approach to enhance the robustness of decision-making models, leading to more informed and flexible decision outcomes. This approach promotes strategic thinking and aids decision-making by allowing individuals to visualize the potential consequences of different decisions under various conditions. This study proposes a fuzzy multi-criteria decision support system that provides a structured framework to address the complexities of agricultural land selection. The decision support system employs a two-person zero-sum game to identify the optimal land management option, considering the strategic interactions between players. The results from the payoff matrix reveal the equilibrium point, providing an ideal solution for more effective land use planning decisions.

Mechanistic Investigation of the Pseudo-Halogen Effect in Enantioselective Aminocatalyzed [6 + 4] and [10 + 6] Cycloadditions: Enabling Unique Favorskii-Like Rearrangements.

A mechanistic investigation into the novel combination of the pseudo-halogen effect with enantioselective aminocatalysis unravels the mechanistic intricacies of [6 + 4] and [10 + 6] higher-order cycloadditions and the succeeding new Favorskii-like rearrangements. By introducing the OTf-group into the tropone framework, it can serve both as an activator for the cycloaddition and as a proficient leaving group within the corresponding cycloadduct, thus enabling unprecedented ring-contracting Favorskii-like rearrangements. Integrating the -OTf group creates an electron-deficient 6π-component leveraging the pseudo-halogen effect by enhancing the polarization and introducing new strategic interaction points. This modification complements electron-rich 4π- and 10π-components from amino-activated 2,4-dienals or indene-carbaldehydes. A comprehensive DFT investigation supported by experimental results demonstrates that the [6 + 4] system proceeds through a rate-limiting stepwise exo-cycloaddition leading to a cycloadduct initially in a boat-conformation, subsequently transitioning to the more stable chair-conformation. The change in conformation ensures an SN1-like expulsion of the -OTf group, generating a stable carbocation bridgehead primed for a novel Favorskii-like seven-to-six ring-contracting rearrangement, resulting in the experimentally observed product. As proof-of-concept for the cycloaddition/Favorskii-like rearrangement, it is demonstrated that this approach can be extended to an unprecedented [10 + 6] cycloaddition. In contrast to the [6 + 4] system, the [10 + 6] system distinguishes itself with a concerted SN1-like/Favorskii-like six-to-five ring-contracting rearrangement, representing the rate-limiting step. This novel concept results in the experimental isolation of structurally complex products in high peri-, diastereo-, and enantioselectivity with moderate yield. These findings demonstrate the pseudo-halogen effect's multifaceted role in promoting and enabling novel reactivity.

Enhancing strategic decision-making in differential games through bifurcation prediction

Qualitative changes can occur in the dynamics of nonlinear systems even for small parameter variations. Such changes are manifestations of bifurcation in dynamical systems. In the context of differential game theory, bifurcations offer insights into the underlying mechanisms driving strategic interactions and identify transitions between different types of behavior. Such critical transitions are tipping points that can dramatically change the outcomes of the game. This work explores the possibility of predicting such qualitative shifts, including supercritical Hopf bifurcations, before they occur using a data-driven forecasting technique. This concept is demonstrated for an attacker–defender game in a limited resource scenario and for an active cybersecurity defense game. The time histories of the system dynamics as it approaches a bifurcation allow one player to detect the existence of bifurcations. This capability provides that player insights into the dynamics of the game and potential defense mechanisms in resource-constrained scenarios.

Evolutionary Game Theory: A General Review

This article explores the Evolutionary Game Theory (now EGT), encompassing its historical underpinnings, recent advancements, and future potential. Originating in the 1970s through the pioneering work of John Maynard Smith and George R. Price, EGT leverages game-theoretic concepts to elucidate the evolution of strategies within various populations across biological, economic, and social domains. Notably, recent progress has seen the integration of advanced large language models (LLMs) such as GPT-3.5 and GPT-4 into agent-based simulations, thereby enriching the authenticity and intricacy of strategic interactions. Additionally, the study addresses the complexities associated with modeling diverse behaviors and bridging the insights derived from LLMs to practical applications in fields like biology, healthcare, education, and social sciences. Furthermore, it underscores the significance of interdisciplinary collaboration and innovative methodologies in addressing the multifaceted challenges within EGT. Finally, the article contemplates the potential avenues for future research, emphasizing the fusion of EGT with real-world applications and the necessity for comprehensive models that encompass the complexities of evolutionary dynamics in adaptive systems.

Does a Left-Wing Political Orientation Really Go Along With Greater Prosociality? A Large-Scale Empirical Investigation

The notion that political orientation is linked to prosociality has been voiced by many, suggesting that supporters of left-wing parties and ideologies may favor prosociality more than supporters of right-wing parties and ideologies. However, evidence for this proposition is inconclusive. We conducted a large-scale, preregistered analysis of the relation between political orientation and prosociality in a heterogeneous German sample (189 ≤ n≤ 1,836) using five different measures of political orientation, six incentivized economic game paradigms to measure prosocial behavior, and 10 measures of trait prosociality. Whereas we found only weak support for left-wing political preferences to be associated with more prosocial behavior, stronger evidence for said link was apparent for trait prosociality. Overall, our study suggests that political orientation and prosociality are indeed linked, thus supporting theoretical arguments. However, this link is relatively weak and depends on the way prosociality is measured.

An Evolutionary Game Analysis of China’s Power Battery Export Strategies Under Carbon Barriers

With the continuous evolution of international trade, the global market has been steadily expanding while also facing increasing challenges, particularly in relation to the introduction of environmental policies such as carbon barriers. Our research explores how China’s power battery manufacturers can adapt their export strategies to the EU’s carbon barrier policies. Additionally, we examine the roles of government regulations, research institutions, and manufacturers in either facilitating or hindering compliance with carbon reduction objectives. Using evolutionary game theory, we construct models involving government entities, manufacturers, and research institutions to systematically analyze market evolution, strategic interactions, and outcomes among these stakeholders. Our analysis focuses on understanding the competitive dynamics faced by exporting countries under stringent environmental policies and provides strategic insights to guide export strategies. Taking the EU’s carbon barrier policy as a case study, we explore Chinese battery manufacturers’ adaptive strategies and decision-making processes as they respond to shifting market demands and regulatory environments. The findings not only offer valuable insights into exporting countries but also provide policymakers with information on international trade and industrial policy design. Furthermore, we validate our model through numerical simulations and conduct sensitivity analyses on key parameters. The results underscore the importance of governmental adoption of punitive and incentive policies, revealing their substantial impact on stakeholder behavior. Additionally, the study highlights how participants’ pre-cooperation losses and post-cooperation gains influence participation rates and the speed at which stakeholder consensus is reached. By offering a novel approach with which to address carbon barrier challenges, this research contributes valuable perspectives on environmental regulations’ strategic and policy implications in global trade.

Resources collection strategy of emergency materials based on evolutionary game model in complex network

PurposeIn recent years, the frequency of emergencies, such as natural disasters and public health crises, has markedly increased globally. These occurrences have introduced new challenges to national public security systems and emergency management capabilities. Post-disaster humanitarian logistic operations involve the collection of emergency relief resources to mitigate the impact of disasters in affected areas. Effective coordination among governments, enterprises and charities is essential to enhance the efficiency of these operations. This study employs evolutionary game theory to explore the strategic interactions and behavioral patterns among these key stakeholders during the collection of emergency materials.Design/methodology/approachA tripartite evolutionary game model involving governments, enterprises and charities is developed. Subsequently, to validate the theoretical findings, a scale-free network is constructed for the purpose of numerical simulations. As this network evolves, both the edges between nodes and the strategy choices of the nodes also change. Numerical simulations are conducted using the network to examine the sensitivity of factors influencing strategic choices among game stakeholders.FindingsAccording to the model simulation results, penalties significantly influence government regulation strength, while enterprise philanthropic behavior is mainly affected by penalties, profit transfer benefits and trust loss. For charities, strategic choices are primarily driven by penalties, tax subsidies, illegal operation benefits and charitable costs. The findings provide a theoretical basis for governments, enterprises and charities to select the sensible strategy.Originality/valueOur study establishes a dynamic network of edges and nodes evolving over time to analyze the strategic evolutionary paths of governments, enterprises and charities from a micro perspective. The results assist governments, enterprises and charities in making more strategic decisions.

Prolonged exertion of self-control causes increased sleep-like frontal brain activity and changes in aggressivity and punishment

Impulsive reactions in social interactions may result in poor or even detrimental outcomes. Particular cognitive states, such as mental fatigue induced by extended practice with cognitively demanding activities, especially if combined with sleep restriction or deprivation, seem to impair the individuals' ability to exert self-control effectively and may result in impulsive behaviors, including aggressive acts. We demonstrate that exertion of self-control for as little as 45 min can lead to an increased propensity for engaging in aggressive acts in the context of socially relevant choices, as measured by a set of economic games. Also, we show that such behavioral changes are associated with increased sleep-like (delta) activity within frontal brain areas related to decision-making and impulse control. The local occurrence of sleep-like slow waves may lead to a disengagement of frontal areas and explain the reduced ability of individuals to exert self-control effectively. Our results suggest that sleep-like activity may emerge within the awake brain within a relatively short time scale, with detectable effects on socially relevant behavior.

Japan Joins Aukus: Motivations, Progress, And Impact

Since its establishment, the AUKUS defense system has encountered significant developmental challenges, primarily due to insufficient internal driving forces, which has created a strategic opportunity for Japan to join AUKUS. Japan seeks to enhance its own defense capabilities, deepen the Japan-U.S. alliance, and define its role in the Indo-Pacific strategy, while also aiming to form close ties with allies in high-tech fields. The U.S. and UK support Japan’s entry into AUKUS and expect to expand the alliance through strategic interaction and technological alliances. However, Australia, considering factors such as geopolitical strategy, institutional construction, and domestic politics, has shown a cautious attitude. Japan’s joining of AUKUS will impact the security structure of the Indo-Pacific region, potentially intensify the regional arms race, and jeopardize the surrounding environment for China’s development.

The equilibrium strategy of insurance companies’ dividends and reinsurance games

We investigated the optimal risk management strategies of an insurance company within a two-player non-cooperative differential game framework. The key feature of this model is considering the company’s surplus as a strategic variable to make the insurance company more attractive to shareholders. In this setup, shareholders are participants who demand a share of the surplus, while managers are participants concerned with the risk management of the surplus. The objective of the shareholders is to maximize the expected discounted dividends. We address this asymmetric game under two different assumptions about the managers’ objectives: in the first scenario, the managers aim to minimize the probability of bankruptcy; in the second scenario, the managers aim to maximize the expected discounted utility derived from the surplus.

Synergistic abatement effects of Broadband China and environmental regulation: Firm-level evidence

Based on the new era context of digital economy and green development, this study uses Broadband China (BC) as a quasi-natural experiment, combining its strategic interaction with environmental regulation (ER), to empirically test the policy synergistic abatement effect of BC and ER. BC has resulted in an average of 6 % reduction in corporate carbon emissions, and the BC–ER policy interaction has encouraged firms to further reduce their emissions. This policy mix mainly exerts an abatement effect on firms by increasing green factors at the input–output stage and improving production efficiency. Furthermore, the digitalization effect of BC reduces corporate carbon emissions. Our empirical results are stronger for firms with high financial constraints, non-heavily polluting firms, non-high-technology firms, state-owned enterprises, and developed urban agglomerations. Furthermore, BC significantly suppresses the sectoral and spatial spillover effects of corporate carbon emissions, and external shocks to ER exacerbate this suppression effect. This study provides empirical evidence supporting the “tripartite win–win” of digital construction, green transformation, and energy conservation.