Over a decade ago, the federal Liberal government announced one of the most controversial policy initiatives in Canadian history, the National Energy Program (NEP). The bargaining that followed the NEP's announcement on October 28, 1980 is easily recalled; intense disagreements focussed on economic, partisan and, ultimately, constitutional issues. While these events have stimulated a wide range of investigations, a prominent gap exists in the scholarship: very few studies adopt a game-theoretic perspective. In seeking to explain strategic interaction over energy policy, such an approach might increase understanding of the difficult political processes surrounding the NEP in a wider context.
These are five stages to the game-theoretic investigation that follows. First, a brief history of the phase of confrontation is provided. Second, the game-theoretic interpretation is presented in general terms, including participants, strategies and potential outcomes. Relevant measurements are derived in the third phase. In the fourth stage, the process of a sequential game is analyzed, in both abstract and operational terms. Fifth, and finally, policy-related implications of the analysis are discussed, along with possible directions for further research.