The Impact of adopting Cooperation Strategy in International Financial Market on Peace: Application of Game Theory

From the perspective of international relations scholars, especially in the liberal tradition, economic cooperation such as trade and investment play a key role in promoting peace and preventing war. Accordingly, the present article, while pointing to objective examples of international relations using "game theory" shows how "economic cooperation in the form of international investment can "While maximizing the benefit of investors, it prevents war and the development of peace". In this paper, using game theory and providing a static game between players, Model the game between investors and countries (with the same economic power) has been dealt with according to each player's possible strategies. To this purpose firstly considered two countries that indifferent to one another and in the third case, there are three countries, one of which is enemy and the other indifferent. Given the equilibrium obtained in all three cases the overall result is that Investor by forming portfolios and investing in different markets and countries achieve the best outcome (Nash equilibrium) by building interaction and peace.