Stability,Organizational Governing,and Trust Constraint in Strategic Allies
Wei We · Economic Management · 2006
A framework of game theory is used to analyze the instability in strategic allies.The weak constraint on opportunistic behavior resulting from self-governance in strategic allies causes the instability.The game players'pay-off structure and their expectation on the future are the crucial forces to keep the stability in strategic allies.The mechanism of trust constraint on strategic allies plays a very important role in maintaining the stability.The suggestions on improving the stability of Chinese strategic allies are supplied in the end.