Higher education in Asian countries and the role of international ...

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In this case only one pure Nash Equilibrium is possible: when both the IGO and state adopt the
Cooperate-Cooperate strategy then they have maximum payoff (1, 1) whereas in case non-
cooperation of any one or both the players, there is no payoff (0, 0) for both participating players.
So in this model there is only one solution that is Pareto efficient and only one strategy that is
Pareto dominant. This setup for coordination game can be extended for more than two strategies
and more than two players.
AA Coordination Game
When applying game theory, multiple equilibria are a major obstacle to cooperation and in a
simple 2×2 Prisoners‟ Dilemma, there is only one point of mutual cooperation, the unattainable
Pareto optimum where both sides choose to cooperate rather than defect (Koremenos, Lipson, &
Snidal, 2001). In the real life, though multiple choices exist for a state and an IGO, all choices
are linked with and depend on cooperation from the both sides. Using Coordination game theory
a simple AA coordination game 1 between state and IGO can be modeled, which is based on 2-
player: one state and one IGO; and 2-strategies: Cooperate or not to cooperate. The payoff matrix
is given below.
IGOs
Cooperation
Non-cooperation
State
Cooperation Non-cooperation
Figure 1 AA Coordination game
1 The researcher has discovered the existence of a new type of coordination, and named it AA-Coordination game.
AA coordination can be used to explain the presence of “only one choice” for the both players in order to achieve
the mutual objectives or maximize the returns. A-A are the two letters from researcher‟s name Amjad Ali.
1
1
0
1
1 0
1
1
0
1
0
1
0
0
1
1