Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159404
Authors: 
Lambertini, Luca
Year of Publication: 
2006
Series/Report no.: 
Quaderni - Working Paper DSE 563
Abstract: 
I use a strategic setup to investigate whether unipolarism can indeed persist as a long run equilibrium. In a three-country world, a global power may subsidise two satellites so as to incentivate them not to invest to build up a coalition against it. I single out the conditions under which the one-shot game is a Prisoners' Dilemma where no subsidy is paid and the coalition arises at equilibrium. Then, I revert to the infinitely repeated game and apply the Perfect Folk Theorem to characterise the critical thresholds of discount factor sustaining unipolarism at the subgame perfect equilibrium.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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