A Game Analysis On Sino-Japan Cooperation And Relative Gains

With the development of globalization and regional economic integration, the interaction between politics and economy becomes more and more apparent. Sovereign countries tend to obtain more interests via the advantages they have achieved in international affairs. The relative gains theory, which is part of the Realism theory, gave a comparatively reasonable explanation to the cooperation dilemma resulted from sovereign countries'concerns over relative power and relative postions in the world. Based on realism theory, this paper analyzed two kinds of interests that impacts international cooperation, relative gains and absolute gains, the path of these two kind of gains, main factors that influence absolute and relative gains sensitivity coefficents, and raised an amended funtion to depict how sovereign countries react to international affairs. Via the analysis of conflicts in politics, economy and security between China and Japan, this paper analyzed the payoffs and prime choices for China and Japan through a game model and revealed how relative gains, absolute gains, sensitivity coefficients and the discount coefficients influenced the division of cooperation bonus.This paper is divided into six parts. The first part considered factors that could impact sovereign countries in international competition and cooperation. The second part introduced the current achievements on international relation theories, relative gains and Sino-Japan relations, brought international politics and economic theories together through relative gains and absolute gains. The third part analyzed the impacts of relative gains and absolute gains, factors, including political sysytem, current development, domestic pressure and other things, that could influence relative gains and absolute gains coefficients. The fourth part mainly considered the conflicts between China and Japan in politics, economy and security. The fifth part manly focused on how all these factors, especially the amended utility function, influenced the payoffs, choices and results of the game. The last part summed the paper and gave several suggestions on how to obtain more interests through the negotiation.The paper found that both relative gains and absolute gains have their own impacts to a country's payoff, relative gains sensitivity coefficient and absolute gains sensitivity coefficient have countrary impacts to the payoff and choices of a country.