The Delicate Balance Redux: The Role of Nuclear Forces, Damage Limitation and Uncertainty in Future U.S.-China Crises
What is the impact of damage limitation capabilities like counterforce and missile defenses on deterrence, when their efficacy in stopping an adversary nuclear attack is uncertain? This is a key unanswered question to understand “how much is enough” for the United States to deter China and Russia in future nuclear crises. In this paper we extend an established, single move game theory model to capture the dynamics of two players in a nuclear crisis having varying damage limitation capabilities with uncertain effectiveness. Our model formalizes the logic of the “delicate balance” school of deterrence, which states that leverage in a crisis is driven by the risk each player can take with their combined strategic forces, and that those risks carry uncertainty as nuclear forces are hard to deliver against technologically advanced adversaries. Our model shows that damage limitation capabilities—even those with significant uncertainty around them like cyber or electronic warfare—can drive bargaining outcomes in an array of nuclear crises. We then apply these bargaining outcomes to the expected U.S.-China strategic balance as China builds out its nuclear force through 2035. We apply published force exchange models to determine the expected damage each side will be able to deliver, and we use these values to determine the likelihood that the U.S. can prevail in crises of varying stakes. Last, we show that U.S. policymakers have an array of options to improve future bargaining outcomes, evaluating how additional nuclear forces trade against improvements in damage limitation.