Political Economy of Ninth Government Based on Game Theory

Document Type : Research Paper

Authors

1 Associate Professor, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran

2 Municipalities and state agencies Dhyaryhay

3 Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran

Abstract

This paper analyzes the reaction of the 9th Government with workers and capitalists using game theory. The type of game between three players is static with perfect information. Strategy of the players is determined through the use of Hierarchical Processes and Network Analysis Method. The equilibrium between these three players is the Nash type of equilibrium. In the Hierarchical and Network Analyses the 1st priority for the government and the capitalists’ players is a lower unemployment rate and access to better business conditions, in that order; however, the 1st priority for the workers is receiving a higher real wage, in the Hierarchical Analysis, and protecting their employment, in the Network Analysis. Contradictory priorities indicate that strategies are not optimum. According to the Nash Balance Games’ Theory too, the priorities are higher rate of economic growth (national income), for the government, and better business conditions and getting a higher real wage, for the workers.

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History

  • Receive Date: 29 July 2013
  • Revise Date: 28 December 2013
  • Accept Date: 09 February 2014

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