7/1/22

Russian gas flow to Germany - a typical prisoner's dilemma

A typical game theory strategy is the prisoner's dilemma. If Germany wants to destroy the Russian economy in several years by canceling imports of oil and gas, then Russia should supply as few resources as possible in order to maximize profits in the short term due to rising prices and destroy the German economy, since Germany will cease to be a consumer anyway in a few years. The rest of the oil and gas sellers in the world are also taking advantage of the situation, maximizing their profits in the short term, as Germany is likely to refuse their services within five years. Nash would praise Russia and the others. No cooperation is a wise strategy. 

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