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Symmetric play in repeated allocation games

  • Kuzmics, Christoph

    (Center for Mathematical Economics, Bielefeld University)

  • Palfrey, Thomas

    (Center for Mathematical Economics, Bielefeld University)

  • Rogers, Brian W.

    (Center for Mathematical Economics, Bielefeld University)

We study symmetric play in a class of repeated games when players are patient. We show that, while the use of symmetric strategy profiles essentially does not restrict the set of feasible payoffs, the set of equilibrium payoffs is an interesting proper subset of the feasible and individually rational set. We also provide a theory of how rational individuals play these games, identifying particular strategies as focal through the considerations of Pareto optimality and simplicity. We report experiments that support many aspects of this theory.

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Paper provided by Center for Mathematical Economics, Bielefeld University in its series Center for Mathematical Economics Working Papers with number 468.

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Date of creation: 17 Apr 2014
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Handle: RePEc:bie:wpaper:468
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  8. Blume, Andreas & Gneezy, Uri, 2010. "Cognitive forward induction and coordination without common knowledge: An experimental study," Games and Economic Behavior, Elsevier, vol. 68(2), pages 488-511, March.
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  18. Baron David & Kalai Ehud, 1993. "The Simplest Equilibrium of a Majority-Rule Division Game," Journal of Economic Theory, Elsevier, vol. 61(2), pages 290-301, December.
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