Deterrence,uncertainty and cooperative behavior

The paper analyzes deterrence relationships in situations when the relevant forms of behavior are subject to lags such as in the case of foreign interventions and technological arms races. Mutual deterrence is a way of inducing cooperative behavior. Successful deterrence, in the cases considered, can be considered as ways of inducing cooperative behaviors in Prisoners’ Dilemma Supergames, the model used in this paper. It is argued that, in general, deterrence is more likely to be successful and hence cooperative behavior more prevalent in systems where the actors can move between strategies quickly (i.e., are flexible) and which are characterized by low uncertainty. The paper also analyzes the concept of discounting and time preference in the discussion of political phenomena where the concept has no market interpretation. It is analyzed as a rational response to uncertainty.