Retaliatory trade tariffs follow game-theoretic models of strategic deterrence.
Retaliatory trade tariffs and economic sanctions are widely analyzed using game-theoretic models, payoff matrices, and strategic equilibria to understand state deterrence and adaptation.
The claim is specific, empirical, and testable using strategic interaction models. Retrieved papers explicitly use game theory, Nash equilibria, and payoff matrices to analyze tariff retaliation and economic sanctions. Therefore, the claim is supported by the literature.
JOSÉ MÉNDEZ NAYA, LUCIANO MÉNDEZ NAYA. TARIFF RETALIATION AND THE FREE TRADE ARGUMENT. 2007. https://doi.org/10.1142/s0219198907001643
Analyzes tariff wars using welfare-maximizing equilibrium models to show how states interact strategically over trade.
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Anoushka Satish Chaturvedi. Economic Sanctions and Strategic Adaptation: A Game-Theoretic Analysis of Russia and Iran. 2026. https://doi.org/10.2139/ssrn.6464600
Applies game-theoretic principles and 2x2 payoff matrices to model economic sanctions and strategic state adaptation.
Oana Secrieru, Ugurhan Berkok. Sanctions, sanctions-busting, and secondary sanctions: A game-theoretic analysis. 2025. https://doi.org/10.15355/epsj.20.1.42
Develops a game-theoretic model of strategic interactions and sanctions-busting involving multiple state players.
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