What game theory teaches Canada about negotiating with an untrustworthy Donald Trump
theconversation.com
Canada can't walk away from its biggest trading partner — so when trust collapses, the only move left is rewiring the incentives themselves.
Game TheoryPrincipal-Agent ProblemCredible CommitmentBargaining Theory
Theory Briefing
- Canada's dependence on the U.S. as a trading partner removes the most powerful negotiating tool: a credible threat to walk away.
- Game theory identifies three structural levers Canada can pull when verbal commitments from the other side carry no weight.
- Changing incentives — not words — is the core prescription when a negotiating partner's promises can't be trusted.
- The analysis treats the Canada-U.S. relationship as a repeated game where reputation and consequences matter more than any single deal.