Puerto Rico as a Critical Locality: Is a Post-Colonial Puerto Rico Possible? A Game-Theoretic Analysis of the Impasse over Puerto Rico's Status

Abstract

The author applies the game-theoretic concept of the 'truel' (or three-person duel) to the Puerto Rico status debate. In summary, the debate over Puerto Rico's future political status resembles a three-person, sequential, random-order truel in which no single player is able to eliminate the other two players. In addition, the author applies some concepts from evolutionary biology (path dependence) and behavioral economics (loss aversion) to explain the current impasse over Puerto Rico's status. Finally, the author examines recent strategic behavior in the US Congress over Puerto Rican status.

Keywords: Truel, Endowment Effect, Path Dependence

JEL Classification: C79, H77