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Research on Trading Friction between China and the US from Game Theory Perspective
Graduate School of Lyceum of the Philippines University, Manila, Philippines
School of Medicine and Health Management, Tongji Medical College, Huazhong University of Science and Technology, Wuhan, China
Center of Health Administration and Development Studies, Hubei University of Medicine, Shiyan, China
School of Economics and Management, Beijing Jiaotong University, Beijing, China
- 1 Graduate School of Lyceum of the Philippines University, Manila, Philippines
- 2 School of Medicine and Health Management, Tongji Medical College, Huazhong University of Science and Technology, Wuhan, China
- 3 Center of Health Administration and Development Studies, Hubei University of Medicine, Shiyan, China
- 4 School of Economics and Management, Beijing Jiaotong University, Beijing, China
American Journal of Industrial and Business Management·Volume 10 (2019)·Pages 19–29·Published 31 December 2019·DOI10.4236/ajibm.2020.101002
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Abstract
Since the development of free trade theory, global economy has developed extremely rapidly. However, protectionism has played a negative role in free trade. It is widely known that the trade friction between China and the US has attracted attention by the whole world and the result may influence the global economy. This paper will analyze the trade friction from game theory, how China and the US can gain optimal payoff and which kind of strategy will be used by China and the US.
KeywordsThe USChinaTrade FrictionSurplusDeficitImposing TariffsProtectionismGame Theory Model
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