Questions tagged [repeated-games]

The tag has no usage guidance.

27 questions
Filter by
Sorted by
Tagged with
43 views

Simultaneous vs Sequential Games

Is there a way to characterize the distinction between simultaneous vs sequential games? I'm trying to describe a situation where players can only take actions without knowledge of other players' ...
109 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 ...
152 views

Infinitely repeated game with stationary and symmetric equilibrium

We have two players playing a repeated game. At every period, each player decides to stay or to quit. If both decide to stay, then they both receive 1. If either decides to quit, then the quitter ...
80 views

Finitely repeated prisoner's dilemma without sub-game perfection

Suppose that two individuals play the prisoner's dilemma (PD) a finite number of times; and assume that they both discount the future at a constant rate. Can cooperation be sustained by a Nash ...
41 views

Could someone help guide me on finding the players with perfect recall, and those without?

Could someone help guide me on finding the players with perfect recall, and those without? For those players that do not have perfect recall, what do they forget? Step-by-step guidance would be ...
187 views

Discount factor and deviating from strategy - Game Theory

I have an exercise in Steven Tadelis Game theory Introduction book (10.2) : Grim Trigger: Consider the infinitely repeated game with discount factor $δ < 1$ of the following variant of the Prisoner’...
787 views

Why is the tat-for-tat strategy a Nash equilibrium in infinitely repeated games?

Why is the tat-for-tat strategy a Nash equilibrium in infinitely repeated games, but not a Nash equilibrium in a finite scenario? Specifically for this matrix: Assume higher payoffs reflect higher ...
69 views

Simple hawk-dove type super-game

We have the following super-game: \begin{array}{cc} & a_1 & a_2 \\ a_1 & 0,0 & -1,1 \\ a_2 & 1,-1 & -2,-2 \end{array} I want to show that both the trigger (or grim) ...
33 views

Penance strategy game theory

I am having some difficulty in understanding the following use of the penance strategy as a strategy to support compliance in the repeated game presented in Asheim et al. (2006). I understand penance ...
36 views

Clarification of iterated prisoners dilemma

In the description of an iterated prisoner's dilemma on Wikipedia, it states that in order for a game to be considered iterable, it must conform to the rule 2R > T + S, where R is the reward for ...
130 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 ...
67 views

Repeated game with stage game has more than 1 NE

Given the game like Prisoner's dilemma (infinitely undiscounted) and each person has 3 actions in every period: confess defect and kill, and the payoff matrix have 2 NE as (D,D),(K,K). Can I still ...
253 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^{...
239 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-...
956 views

Game theory with rational and irrational players

Are there game theoretic models where one player is rational and the other is irrational (i.e., plays with behavioral limitations)? The motivation for this question is that behavioral economics has ...
56 views

Is it possible to transfer information through strategic games?

Let's say that there are 2 players Player A and Player B, engaged in a set of repeated strategic games. Is it then possible to transfer information from one player, say Player A, to the other player, ...
347 views

Collusion, deviation from equilibrium

Two firms can produce either low (L), medium (M) or high (H) quantity. The payoff matrix is given by: What is the outcome of this game if firms play only once? Suppose the game is played for infinite ...
56 views

Maximum level of profit attainable when discount factor is too low

This is a question I encountered during my undergraduate studies in Industrial Economics. So the question goes like this: Consider two identical firms with constant marginal cost $c$ which ...
242 views

1k views

Real-life applications of repeated games theory

What are some scenarios in which the theory of repeated games have been applied? I am looking, for example, for scenarios in which a government, a firm or a person accepted a decision which relied ...
45 views

Repeatedly playing an equilibrium in a repeated game

What is a formal proof to this known fact about repeated games? The situation in which, in every time step, the players play a Nash equilibrium in the basic game unconditioned on history, is a Nash ...