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The absent-minded prisoner

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  • Dilger, Alexander

Abstract

If one of two rational players is absent-minded for at least three rounds, cooperation in a prisoners dilemma with a finite number of repetitions is possible. If both players are absentminded, even two rounds of absent-mindedness can be enough for cooperation in these rounds and all rounds before. Sufficient conditions for the existence of a cooperative equilibrium are derived, a plausible interpretation of absent-mindedness in the case of many repetitions is given. --

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Bibliographic Info

Paper provided by Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics in its series Wirtschaftswissenschaftliche Diskussionspapiere with number 14/1998.

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Date of creation: 1998
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Handle: RePEc:zbw:grewdp:141998

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Keywords: absent-mindedness; prisoners dilemma; repeated games;

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References

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  1. Piccione, M. & Rubinstein, A., 1996. "The Absent Minded Driver's Paradox: Synthesis and Responses," Papers, Tel Aviv 39-96, Tel Aviv.
  2. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, Elsevier, vol. 27(2), pages 245-252, August.
  3. Aumann, Robert J. & Hart, Sergiu & Perry, Motty, 1997. "The Forgetful Passenger," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 117-120, July.
  4. Dulleck, Uwe & Oechssler, Jorg, 1997. "The absent-minded centipede," Economics Letters, Elsevier, Elsevier, vol. 55(3), pages 309-315, September.
  5. Aumann, Robert J. & Hart, Sergiu & Perry, Motty, 1997. "The Absent-Minded Driver," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 102-116, July.
  6. Lipman, Barton L., 1997. "More Absentmindedness," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 97-101, July.
  7. Rubinstein, Ariel, 1995. "On the Interpretation of Decision Problems with Imperfect Recall," Mathematical Social Sciences, Elsevier, Elsevier, vol. 30(3), pages 324-324, December.
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Cited by:
  1. José Luis Ferreira & Praveen Kujal & Stephen Rassenti, 2009. "The strategic motive to sell forward: experimental evidence," Economics Working Papers we092616, Universidad Carlos III, Departamento de Economía.

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