What is an infinitely repeated game?
An infinitely repeated game is also sometimes called a supergame. How players evaluate payoffs in infinitely repeated games. A player receives an infinite number of payoffs in the game corresponding to the infinite number of plays of the stage game.
What is different about iterated repeated games?
When players interact by playing a similar stage game (such as the prisoner’s dilemma) numerous times, the game is called an iterated (or repeated) game. Unlike a game played once, a repeated game allows for a strategy to be contingent on past moves, thus allowing for reputation effects and retribution.
What is the repeated prisoner’s dilemma?
The iterated prisoner’s dilemma is an extension of the general form except the game is repeatedly played by the same participants. An iterated prisoner’s dilemma differs from the original concept of a prisoner’s dilemma because participants can learn about the behavioral tendencies of their counterparty.
What is SPNE game theory?
Definition: A strategy profile for an extensive-form game is a subgame perfect Nash equilibrium (SPNE) if it spec- ifies a Nash equilibrium in each of its subgames.
What are the differences between one-shot game and repeated games?
– One-shot game: game is played once. – Repeated game: game is played more than once; either a finite or infinite number of interactions.
How is the prisoner’s dilemma result changed in a repeated game?
How is the prisoner’s dilemma result changed in a repeated game? Players can employ retaliation strategies.
How does the prisoner’s dilemma compare to the outcome of a repeated game quizlet?
How does the prisoner’s dilemma compare to the outcome of a repeated game? In a repeated game, two firms are more likely to charge the high price and receive high profits.
How many Subgames are there?
There are three subgames: There are two proper subgames; one beginning at node B and one beginning at node A. The game itself is a subgame. There are two paths to Nash equilibria.
Can you have multiple SPNE?
More videos on YouTube Most games have only one subgame perfect equilibrium, but not all. When players receive the same payoff for two different strategies, they are indifferent and therefore may select either. This causes multiple SPE.
How does a repeated game impact firms behaviors?
How does a repeated game impact firms’ behaviors? Firms may restrain from competing as hard as possible. Firms may reciprocate their rivals’ actions.
What is a finitely repeated game?
A finitely repeated game is a game in which the same one-shot stage game is played repeatedly over a number of discrete time periods, or rounds. Each time period is indexed by 0 < t ≤ T where T is the total number of periods.
What is the difference between stage game and repeated game?
The stage game is usually one of the well-studied 2-person games. Repeated games capture the idea that a player will have to take into account the impact of his or her current action on the future actions of other players; this impact is sometimes called his or her reputation. Single stage game or single shot game are names for non-repeated games.
What are the different types of repeated games?
Repeated games may be broadly divided into two classes, finite and infinite, depending on how long the game is being played for. Finite games are those in which both players know that the game is being played a specific (and finite) number of rounds, and that the game ends for certain after that many rounds have been played.
How do you solve a repeated game?
In general, repeated games are easily solved using strategies provided by folk theorems. Complex repeated games can be solved using various techniques most of which rely heavily on linear algebra and the concepts expressed in fictitious play .