CPO-2002 Lecture Notes - Lecture 13: Strategic Dominance

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Individuals have a dominant strategy to cheat, steal, kill, etc. Both players get their second worst outcome, even though they could get their second best outcome if they could agree to forebear. The absence of cooperation represents a sort of dilemma individual rationality leads actors to an outcome that is inferior in the sense that both players agree that the same alternative outcome is better. Ho(cid:271)(cid:271)es"s solutio(cid:374) (cid:449)as to (cid:272)reate a so(cid:448)ereig(cid:374) (cid:449)ith suffi(cid:272)ie(cid:374)t (cid:272)o(cid:374)trol of for(cid:272)e that i(cid:374)di(cid:448)iduals (cid:449)ould sta(cid:374)d i(cid:374) (cid:862)a(cid:449)e. (cid:863) He believed that the state of nature was so bad that individuals would be willing to transfer power and so on to the sovereign in exchange for protection. This would be achieved with the help of a social contract. Social contract an implicit agreement among individuals in the state of nature to create and empower the state. In doing so, it outlines the rights and responsibilities of the state and citizens in regard to each other.

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