Cooperation in a repeated game with random payment function

Cooperation in a repeated game with random payment function

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Article ID: iaor1988664
Country: Israel
Volume: 25
Issue: 3
Start Page Number: 478
End Page Number: 491
Publication Date: Sep 1988
Journal: Journal of Applied Probability
Authors: ,
Abstract:

A model of cooperation versus defection in a sequence of games is analysed under the assumptions that the rules of the game are randomly changed from one encounter to another, that the decisions are to be made each time anew, according to the (random) rules of the specific local game, and that the results of one such game affects the ability of a player to participate and thus, cooperate in the next game. Under plausible assumptions, it is shown that all Nash solutions of the supergame determine cooperation over a non-degenerate range of rules, determining encounters of the prisoner’s dilemma type.

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