Our proposed framework, Relational Zone Economics (RZE), introduces a paradigm shift. It asks not merely what each actor receives, but where they currently reside in a dynamic relational spectrum, and how their position shifts over time, given prior interactions, future expectations, and the strategic interplay of memory, trust, emotion, and ambiguity. This reflects a departure from mechanistic equilibria toward a living system of strategic fluidity.
Core Innovations of the Framework:
A. Zone-Based Interaction System
Rather than presuming a single, universal equilibrium or one-size-fits-all rationality, the RZE framework organizes economic actors and interactions into six relational zones:
1. Black Zone -- Destructive betrayal and intentional harm.
2. Red Zone -- Aggressive distrust and defensive maneuvering.
3. Yellow Zone -- Caution, ambiguity, and strategic withholding.
4. Green Zone -- Cooperative optimism and mutual benefit.
5. White Zone -- Conditional generosity and forgiveness.
6. Clear Zone -- Pure transparency and sustained harmony.
Each zone has its own logic, memory decay functions, and sensitivity to signals, forming a non-linear phase space for economic interaction. Actors do not merely optimize strategies, but navigate between zones, with zone migration shaped by:
Emotional feedback loops
Anticipated future intentions
Long-term vs. short-term interests
Historical trust trajectories
B. Temporal and Strategic Memory
Whereas classical models often treat history as irrelevant once an equilibrium is reached (Markovian assumptions), RZE posits that memory is sticky and weighted, with asymmetric effects:
A betrayal lingers longer than a favor.
Trust built slowly collapses quickly.
Apologies and gestures can reset but not erase.
The memory function is adaptive, governed by contextual weights: in high-stakes investment scenarios, for example, older betrayals may retain significance much longer than in routine trade.
C. Multiscale Interest Modeling
Standard game-theoretic payoffs usually focus on discrete rounds or cumulative payoffs over fixed horizons. RZE incorporates a multiscale modeling of interest, where:
