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We find that contrary to common perception, cooperation as equilibrium of the infinitely repeated discounted prisoner …-discount factor parameter space cooperation equilibria are strictly risk dominated by non-cooperation (according to the Harsanyi … dominance ; Repeated games ; Equilibrium selection ; Cooperation ; Collusion …
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size. -- Bounded rationality ; Evolutionary game theory ; Imitation ; Better replies ; Markov chain ; Stochastic stability …
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In Young (1993, 1998) agents are recurrently matched to play a finite game and almost always play a myopic best reply to a frequency distribution based on a sample from the recent history of play. He proves that in a generic class of finite n-player games, as the mutation rate tends to zero,...
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We model networks of relational (or implicit)contracts, exploring how sanctioning power and equilibrium conditions change under different network configurations and information transmission technologies. In our model, relations are the links, and the value of the network lies in its ability to...
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