Blonski, Matthias; Spagnolo, Giancarlo - C.E.P.R. Discussion Papers - 2003
features of the repeated Prisoner's Dilemma. The pay-offs agents obtain when being ‘cheated upon’ by other agents play no role … in these models. We propose a way to take these pay-offs into account, and find that cooperation as equilibrium of the … parameter space, all cooperation equilibria are strictly risk dominated in the sense of Harsanyi and Selten (1988). We derive an …