We present a complete picture of the relationship between the existence of 0-optimal strategies and ε-optimal strategies, ε>0, in the classes of stationary, Markov and history dependent strategies. Copyright Springer-Verlag Berlin Heidelberg 2002

We model and analyze strategic interaction over time in a duopoly. Each period the firms independently and simultaneously take two sequential decisions. First, they decide whether or not to advertise, then they set prices for goods which are imperfect substitutes. Not only the own, but also the...

For the iterated Prisoner's Dilemma there exist good strategies which solve the problem when we restrict attention to the long term average payoff. When used by both players, these assure the cooperative payoff for each of them. Neither player can benefit by moving unilaterally to any other...