Critical Discount Factor Values in Discounted Supergames

Critical Discount Factor Values in Discounted Supergames

This paper examines the subgame-perfect equilibria in symmetric 2×2 supergames. We solve the smallest discount factor value for which the players obtain all the feasible and individually rational payoffs as equilibrium payoffs. We show that the critical discount factor values are not that...

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Bibliographic Details
Main Authors: Kimmo Berg, Markus Kärki
Format: Article
Language:English
Published: MDPI AG 2018-07-01
Series:Games
Subjects:
repeated game
folk theorem
discount factor
2 × 2 games
payoff set
correlated equilibrium
Online Access:http://www.mdpi.com/2073-4336/9/3/47

Internet

http://www.mdpi.com/2073-4336/9/3/47

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