Article ID: | iaor19942337 |
Country: | Germany |
Volume: | 23 |
Start Page Number: | 65 |
End Page Number: | 74 |
Publication Date: | Sep 1994 |
Journal: | International Journal of Game Theory |
Authors: | Lapson R. |
Keywords: | prisoner's dilemma |
The paper deals with a one-shot prisoners’ dilemma when the players have an option to go to court but cannot verify their testimonies. To solve the problem a second stage if added to a game. At the first stage the players are involved in the prisoners’ dilemma and at the second stage they play another game in which their actions are verifiable. In such a setup the information about the actions chosen at the prisoner’s dilemma stage can be revealed through strategic behavior of the players during second stage. A mechanism for such revelation in the extended game is described. It provides an existence of a unique sequential equilibrium, which may be obtained by an iterative elimination of dominated strategies and has a number of desirable properties.