Modelling of Two-Level Negotiation in Hierarchical Hypergame Framework

The purpose of this study is to propose two-level hierarchical hypergame model (THHM) and to examine characters in hierarchical negotiation. The THHM captures some essential features of international negotiation between two countries. It usually involves two-level negotiation, i.e., international and domestic negotiation. The THHM tries to formulate such a hierarchical negotiation situation by extending the hypergame. The present research is a first contribution to examine two-level negotiation structure in terms of hypergame. We introduce a holistic concept of rational behavior as a whole as hierarchical Hyper Nash equilibrium (HHNE). Then, we clarify an existence condition of HHNE.