Macau Periodical Index (澳門期刊論文索引)

Gao, Jie; Sheng, Li
Explaining Sino-US trade disputes: A dollar auction game
Journal Name
Pub. Info
Apr. 2020, 總第44期, No.2, pp. 90-101
Sino-US trade disputes;A dollar auction game;Trade imbalance;Globalization;Decision making
Abstract : This study examines the causes of Sino-US trade disputes by using a dollar auction game to analyze global imbalances. The authors argue that the trade disputes between China and the U.S. should be deemed as a non-zero-sum game as well as a dollar auction in the abstract. In this game, the interests of both parties involved in the bidding will finally be damaged, and the only winner is the "auctioneer". In this case, the auctioneer refers to all the issues that have concerned both sides ever since the process of globalization began. Through tracking the trajectory of economic development and social-political changes in both China and the U.S., it is found that the effects of the growing US-China tensions extend into individual society concerning unemployment, income inequality, and many other social factors. The authors indicates that the trade disputes will not have effectively amelioratedeither country's problems but the game operates with condition that there are no collusions or threats, this analogy makes clear the necessity of an open dialogue. The authors suggested that to solve the domestic problems in the U.S., adjusting domestic taxes, such as consumption tax, is more reasonable and effective than imposing tariffs and establishing other trade barries. Paragraph Headings: 1. Introduction 2. The dollar auction 3. Who is the "Auctioneer" and what is "a Dollar"? 4. Who will be the winner? 5. Conclusion