Two approaches to equilibrium selection are contrasted in the context of an investment-opportunism-retaliation (IOR) game. In this game, a valuable (efficient) investment may be forgone in the face of opportunistic behavior, however, players who are victims of opportunism may retaliate to the...

Two approaches to equilibrium selection are contrasted in the context of an investment-opportunism-retaliation (IOR) game. In this game, a valuable (efficient) investment may be forgone in the face of opportunistic behavior, however, players who are victims of opportunism may retaliate to the...