# Questions tagged [repeated-games]

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### A feasible rational payoff that is not an equilibrium payoff in the repeated game

The textbook I am currently reading claims that, in an infinitely-repeated game with discount, there might be a payoff vector which is feasible and individually-rational, but it is not an equilibrium ...
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 ...
404 views

### Dominated Strategies in an Infinitely vs Finitely Repeated Game

How does the concept of weak dominance work with infinite games? The abundance of concepts seems to muddy things. In particular, suppose two players play the following game an infinite number of ...
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^{...
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 ...
217 views

### Payoffs in an infinitely-repeated game with discounting

Consider a game with the following payoff matrix: 3,5 0,0 0,0 0,0 5,3 0,0 0,0 0,0 0,0 Suppose the game is played infinitely many times, and both ...
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) ...
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 ...
786 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 ...
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 ...
43 views

### Repeated games with decreasing marginal returns

The standard analysis of repeated games assumes that the payoff of a player from a repeated game is a sum (or arithmetic mean, or discounted sum) of the payoffs in the basic games. But what if the ...
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’...
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-...
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 ...
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 ...
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 ...
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' ...
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 ...
1k 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 ...
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 ...
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, ...
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 ...