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Democratic Transition Game
Consider the case that you are a soft-liner in an authoritarian regime who would like to introduce a policy of liberalization. Your goal is to co-opt the opposition into a broadened dictatorship, not to transition to democracy. You are a dictator, not a democrat!
1. If you open and civil society enters, then you achieve your objective of a Broadened Dictatorship.
2. If you open and civil society organizes, then you need to decide whether to democratize and become a full democracy or to repress.
3. A successful repression will lead to a narrow dictatorship, whereas an unsuccessful repression will lead to insurgency.
4. Repression is successful only if civil society is weak.
Figure 1
Figure 2
-The game tree in Figure 1, is associated with the game in which you are sure that civil society is WEAK. Solve the game by backward induction. What is the subgame perfect Nash equilibrium? (Note: write the equilibrium in the form [Soft-liner's 1st move, Soft-liner's 2nd move; Civil Society's move]) .
Standard Costs
Predetermined or estimated costs used to compare with actual costs, serving as a financial management tool for analyzing variances.
Sales Variances
The differences between actual sales and budgeted or projected sales, often analyzed to assess performance.
Variable Overhead Cost Variance
The difference between the actual variable overhead costs incurred and the standard costs expected for the actual production level.
Direct Labor Cost Variance
The difference between the budgeted cost for direct labor and the actual cost incurred, used as a measure of performance efficiency.
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