A Model of Cooperation Formation among States Based on a Mutual Trust

The paper examines stationary and dynamic gametheoretic models of cooperation formation among agents based on mutual trust. The dynamic model confirms that trust is a critically important factor in economic interactions. Mutual trust can significantly increase the payoffs for all agents, but its achievement is possible only for a certain class of input parameters of the model and requires a significant return on each agent’s investment in the public good. The model uses the value of social trust to describe social norms accepted in society. The study of the dynamic model was conducted based on Nash equilibrium in the static case and via simulation modelling for heterogeneous agents with different objective functionals. In the model, individual states act as agents. It is shown that the payoff of states directly depends on the degree of trust between them and can grow significantly in the presence of trust. Simulation experiments were conducted in the dynamic case, and the results were analysed.