Nash – Disequilibrium, Random Decisions and Imbalance of Society: Is it Relevant to Ukraine?

Abstract

Ukrainian society is undergoing rapid transformational changes. The authors attempted to identify the main behavioral strategies before the war as well as possible changes in the following years. Attempting to recognize the most prevalent behavior in society, the interaction and attitude of students during the exam were taken into consideration. The student group includes representatives of various regions in proportionate numbers. The research is based on the simulation of the interaction of different groups in society by means of game theory and programming. The study proposes using Schumpeter market disturbances and ‘Nash disequilibrium’ to invigorate the current ineffective system. It has been shown that pre-war Ukrainian society exhibited a very high level of collusion. The interim conclusions were tested using Axelrod’s tournament algorithms and strategies. A simulation of the cooperative equilibrium in Ukrainian society during the pre-war period was demonstrated. The study also contains important predictions about the changes in the institutional environment in the aftermath of the war in Ukraine.