Motivated by the US-China competition we build a model where a status quo power and an emerging power play a Stackelberg game of providing a club good at a location. The cost of producing the club good depends on how many small countries are willing to join the club. By integrating non-cooperative and cooperative games into a unified framework where two groups of heterogenous players have interrelated objectives we study how the influence of the superpowers changes world order. We simulate the game to show how the US and China have shaped world order from 2006 to 2019.

Tomoo Kikuchi / Associate Professor at the Graduate School of Asia-Pacific Studies, Waseda University