Title
Date of this Version
6-14-2001
Document Type
Working Paper
Abstract
In a carrot game for a player, that player must help his opponent to get a desired response. In a stick game for a player, that player must hurt his opponent to get a desired response. We show that most all smooth monotonic two player games can be classified as: carrot for both, carrot for one and stick for the other, or stick for both. We transform carrot and stick games into sequential move games and incentive games. A carrot game for a player implies mutual benefits will come from his moving first. A stick game for a player implies that if he moves first, the other player will suffer. Incentive games based on a carrot game for each player bring mutual gains. Those based on a stick game for each player bring harm to at least one and possibly both.
Publication Details
Jeffrey J. Kline (2001) Carrot and stick games
School of Business Working Paper ; No. 6, Jun 14, 2001
© Copyright Jeffrey J. Kline and the School of Business, Bond University