<p>Nations can benefit from each other in all three of the broad sectors.</p>

<p>Collaboration in the primary sector (Involving raw materials, fishing, agriculture and mining) can lead to more sustainable extraction of resources. For example Nation A can choose to import Resource Y from Nation B rather than exhausting their own source. Nation A gains Resource Y and Nation B gets money.</p>

<p>Outsourcing is the most obvious example of collaboration in the secondary sector, Australian companies may outsource manufacturing work to Bangladesh, this is beneficial to both nations as money is going to Bangladesh and goods are going to Australia.</p>

<p>The tertiary sector involves providing services to consumers. One example of this could be tourism related services, if a tourist from overseas uses one of these tourist related services, the country they are visiting would receive money in exchange for the service, and the tourist would have their experience improved in some way. This example is small scale but when you consider how many people travel around the world it builds up.</p>

CC BY-SA 3.0
2016-10-19T12:01:34.953Z
2016-10-19T12:01:34.953Z
jimmy_bee123
<p>For instance, if a nation is an ally (diplomatic/trade) with another nation, the average payoff each nation gets is higher than the payoff they would gain individually?</p>

<p>For instance, comparing to individuals and chat applications, if one user uses chat app A, and another uses B, they can't communicate. But they can communicate with all friends who use the same chat app. The payoff is directly proportional to the number of friends which use the same application.</p>

CC BY-SA 3.0
2016-10-19T08:34:17.790Z
Why is this a game theory question? What is the game here?
Giskard
CC BY-SA 3.0
2016-10-21T00:46:45.227Z
Is [comparative advantage](https://en.wikipedia.org/wiki/Comparative_advantage) what you are looking for?
tvk
CC BY-SA 3.0
2016-10-22T05:02:33.913Z
@denesp Game theoretic because you could use the payoff matrix to formulate a game
piedpiper
CC BY-SA 3.0
2016-10-22T05:03:09.970Z
@FangJing I don't think exactly. My example is more about network effects than about economies of scale.
piedpiper
CC BY-SA 3.0
2016-10-22T06:41:39.287Z
"you could use the payoff matrix to formulate a game" What payoff matrix? This is my problem. The game is totally undefined. Who are the players? What exactly are the strategies? What are the payoff functions? If you define these precisely you will have a game. Until then you have a modelling problem.
Giskard
CC BY-SA 3.0
2016-10-22T23:23:16.547Z
The players are individual nations. The decisions each nation makes is a 1/0 decision on whether or not to cooperate with another nation. Not all choices are possible because cooperating with some nations would mean non cooperation with some others. Your payoff depends not only on your choice, but also no the choice of each other nation. For every such choice, there is a payoff (and we model that not all choices are possible through the payoff). The game is then to choose the best possible strategy for each player (and for us to compute the Nash equilibrium).
piedpiper
<game-theory><networks>
What are some sectors in which nations benefit from collaborating with other nations?
piedpiper
# What are some sectors in which nations benefit from collaborating with other nations?

(Asked by: username_0 on 2016-10-18)

For instance, if a nation is an ally (diplomatic/trade) with another nation, the average payoff each nation gets is higher than the payoff they would gain individually?

For instance, comparing to individuals and chat applications, if one user uses chat app A, and another uses B, they can't communicate. But they can communicate with all friends who use the same chat app. The payoff is directly proportional to the number of friends which use the same application.

**Tags:** game-theory, networks
> **Comments:**
> **username_1**: Why is this a game theory question? What is the game here?  
> **username_2**: Is [comparative advantage](https://en.wikipedia.org/wiki/Comparative_advantage) what you are looking for?  
> **username_0**: @denesp Game theoretic because you could use the payoff matrix to formulate a game  
> **username_0**: @FangJing I don't think exactly. My example is more about network effects than about economies of scale.  
> **username_1**: "you could use the payoff matrix to formulate a game" What payoff matrix? This is my problem. The game is totally undefined. Who are the players? What exactly are the strategies? What are the payoff functions? If you define these precisely you will have a game. Until then you have a modelling problem.  
> **username_0**: The players are individual nations. The decisions each nation makes is a 1/0 decision on whether or not to cooperate with another nation. Not all choices are possible because cooperating with some nations would mean non cooperation with some others. Your payoff depends not only on your choice, but also no the choice of each other nation. For every such choice, there is a payoff (and we model that not all choices are possible through the payoff). The game is then to choose the best possible strategy for each player (and for us to compute the Nash equilibrium).  

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## 1 answers

### Answer by username_3 on 2016-10-19. Score: 3

Nations can benefit from each other in all three of the broad sectors.

Collaboration in the primary sector (Involving raw materials, fishing, agriculture and mining) can lead to more sustainable extraction of resources. For example Nation A can choose to import Resource Y from Nation B rather than exhausting their own source. Nation A gains Resource Y and Nation B gets money.

Outsourcing is the most obvious example of collaboration in the secondary sector, Australian companies may outsource manufacturing work to Bangladesh, this is beneficial to both nations as money is going to Bangladesh and goods are going to Australia.

The tertiary sector involves providing services to consumers. One example of this could be tourism related services, if a tourist from overseas uses one of these tourist related services, the country they are visiting would receive money in exchange for the service, and the tourist would have their experience improved in some way. This example is small scale but when you consider how many people travel around the world it builds up.


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