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This paper explores first the prisoner’s dilemma facing the dynamic alliances in the process of trust establishment with reference to the analytical method of game theory and then examines the function mechanism, application conditions, and existing deficiencies involved in system guarantee, reputation and emotion mechanisms related to the process. The result shows that efforts have to be further exerted on perfecting the legal system, strengthening reputation mechanism, and fostering emotion mechanism so as to alter the situation of prisoner’s dilemma.

Analysis on the Functions and Effectiveness of Reputation Mechanism in Alliance Cooperation