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Slight Uncertainty of Continuation in Repeated Prisoner's Dilemma

In a repeated prisoner's dilemma with some probability δ of continuing after each round, a Subgame Perfect Nash Equilibrium may be found which induces cooperation instead of defection in each round. ...
user10478's user avatar
  • 455
4 votes
1 answer
225 views

Finitely repeated Prisoner’s Dilemma with switching cost

I'm doing this finitely repeated Prisoner's dilemma with switching costs but I have trouble showing the fact that $\varepsilon$ had to be $1 < \varepsilon < 2$. I do see why and that it is a ...
Justin Malik's user avatar
2 votes
1 answer
605 views

Repeated Game SPNE

I approached this question in this way: $(P_1,P_2), (R_1,R_2), (S_1,S_2)$ are the Nash Equilibria of the Stage 1 game. For the given strategy to be sustained as SPNE, there should be no way unilateral ...
S.Rana's user avatar
  • 401
4 votes
0 answers
539 views

Why is the symmetric grim trigger not a Nash?

Consider the stage game: Let $\delta\in(0,1)$ be the discount factor. Let $G$ be the symmetric grim trigger strategy profile. The payoffs are then $$E_{A}(G) = E_{B}(G) = \sum_{i=0}^{\infty}3\delta^{...
user avatar
2 votes
1 answer
712 views

Tit-For-Stat Strategy Best Replies

Let $\delta\in(0,1)$ be the discount factor. Consider the stage game in the infinitely repeated prisoner's dilemma game: The goal is to derive conditions on $\delta$ such that the symmetric tit-for-...
user avatar
0 votes
2 answers
3k views

Nash Equilibrium of modified Keynes' beauty contest

Recently I conducted a small game among students of our institute. The game was based on Keynes' beauty contest game. The participants had to guess a number between 0 to 100 and the participant whose ...
Sub-Optimal's user avatar
  • 1,104