The Debt Ceiling Game Is Parent-Child With A Bad Nash Equilibrium
In game theoretical terms, the debt ceiling standoff is the Parent-Child game. The ‘Child’ is the Democrats who can cut spending a lot (be very good), cut spending a little (be quite good), or not cut spending (be bad). The ‘Parent’ is the Republicans who can refuse to lift the debt ceiling (punish), or lift the debt ceiling (not punish).
