wooly bully,

You make the excellent points that most game theory research relating to bullying focusses on zero-sum situations & that the upcoming NAFTA negotiations have too many dimensions & complexities for easy assessment in a zero-sum game context.

I also agree that Canada must be very careful in picking its times & ways to stand up to unreasonable or one-sided US demands.

However, it does not follow that by acceding to a few excessive US demands on a unilateral basis that the US will thereafter show some restraint and thereafter normalize trade & political relations with us. It's more likely that they'll simply up the ante by making further outrageous demands now or in the future.

There is no easy, safe & cost-free route forward for Canada but as my comments elsewhere concerning this article describe, the Federal Government to date has been following a wise middle course.