Does cheap talk matters when the U.S.A is dealing with North Korea?
A game theoretical analysis of international policy is of great interest from an economist’s point of view and game theory has widely been used when analysing international trade, tariffs etc. In this thesis I will use “Cheap-Talk games” to analyse if threats from the U.S. targeting North Korea are having any impact. Cheap talk games are an application of the perfect Bayesian equilibrium of “dynam