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sov-strat-game

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@jeanbapt jeanbapt released this 04 Feb 11:18
· 14 commits to main since this release

This is the first release: a toy game with one strategic dependency.
An EU firm depends on a US tech supplier who passes tariff costs through 100% (pricing power). Exit takes 3 years and is expensive. Tariffs may be imposed, removed, re-imposed unpredictably as trade wars evolve.
The model optimizes migration policy (wait/hedge/accelerate/exit) under two layers of uncertainty:

  • Risk: Tariff regime switches (Markov dynamics)
  • Ambiguity: Unknown transition probabilities (Wasserstein ball around forecast)

This captures both random political shocks and forecast errors about their persistence.