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I think the AI should sometimes liberate and colonize. For example the USSR should automatically colonize any country it takes. The AI should also colonize a country if it is on a different country. The AI should liberate if it had good enough relations (with the country it was fighting) before the war or it wants to improve influence in that theater.

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"Don't worry about the world ending today. It is already tomorrow in australia"
-Charles Schultz

i like the ai annexing territory it is more realistic in my opinion

Think of all the british colonies. Most countries are liberated or colonised and not annexed.

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"Don't worry about the world ending today. It is already tomorrow in australia"
-Charles Schultz

not after the early part of the 20th century every" wars" fought since then has be for territory, Iraq- Iran, Iraq-Kuwait.

Meh preference based on leader would be my preferred solution. Some leaders are more likely to annex, others are more likely to liberate.

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Either that or like in WWII the defending countries liberate all captured (recaptured) countries

Actually looking at historical data it seems that if one takes a country with a lower gdp/c they would colonize/liberate it, whereas if it is higher they would annex it. Just a theory though
Edit: but honestly I don't care what the system is as long as there is one (even if it is completely randomized) I do like fistalis' suggestion though

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"Don't worry about the world ending today. It is already tomorrow in australia"
-Charles Schultz

The main problem is the sheer number of factors that need to be weighed before a decision is made. To do it properly would actually require quite a complicated system!

Just think about what you consider when you annex/colonise/liberate.

Your countries role in the war will have an effect, i.e. are you the aggressor, the defender or just a third party trying to impose peace.
How far away is the land you have conquered? How big is the land? How big is your land? What is the population of the people? How well funded were their social systems? What resources do they have? What is their economy like? What do they import or export and in what quantities? How hard would it be to defend the new land? Are you at war with another nation at the moment? What does your nation think of the other nation?

All of these, and other factors, play a role in deciding whether a conquered nation should be annexed/liberated/colonised. Now how do you put that into the game?

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- [On the topic of timelines] "Time isn't made of lines, it is made of circles, that's why clocks are round!" - Unknown-

Number 46-48 = First to Sixth Type Savant

I think the big issue should be the size of the area to be annexed. Small regions (such as the Bahamas) are more likely to be annexed than Algeria or Thailand. Even better is if it is a relative forumla (AI USA or India, with large pops and land mass, are more likely to annex a small nation than El Salvador trying to annex Brazil).

I agree that size is important for deciding whether to liberate or annex/colonize, but i don't think it matters for deciding whether you should annex or colonize. Sorry if that's confusing

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"Don't worry about the world ending today. It is already tomorrow in australia"
-Charles Schultz

I must say that I agree more with Tofofnts!

But even then size is certainly not the only important factor.

What about location? Is China more likely to colonise Thailand or to annex it? Compare that to say France...
What about historical/cultural factors? Is China more likely to annex or colonize Taiwan?
And these are just two of many other factors!

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Much Thanks

- [On the topic of timelines] "Time isn't made of lines, it is made of circles, that's why clocks are round!" - Unknown-

Number 46-48 = First to Sixth Type Savant

I definitely agree with the part on location, for example (historically) almost no country has annexed a country on a different continent. I think factors should be:
Size
Location
Leader/country (Leader's personality, historical/cultural traditions)
Relations
Who declared war on whom
Gov. type of attacker
Gov. type of defender
Wealth
Resources
Population

Wow... That's a long list (no wonder the goats haven't done this yet)

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"Don't worry about the world ending today. It is already tomorrow in australia"
-Charles Schultz

Yeah, when you actually stop and think of just how many factors play into this it starts to become an incredibly complicated feature!

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Much Thanks

- [On the topic of timelines] "Time isn't made of lines, it is made of circles, that's why clocks are round!" - Unknown-

Number 46-48 = First to Sixth Type Savant