The Planet Money podcast episode analyzes the U.S.-China trade war through the lens of game theory, exploring different game models to understand the strategies of both countries. The hosts, Keith Romer and Amanda Aronczyk, along with insights from trade economist Emily Blanchard and China expert Yun Sun, consider the trade war as an ultimatum game, a game of chicken, a war of attrition, and the Prisoner's Dilemma. Ultimately, the discussion suggests that the trade war may be part of a larger geopolitical competition, making it difficult to determine the optimal strategy for either side, and that cooperation, though challenging, could lead to a better outcome than continued conflict.
