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Linking of Repeated Games. When Does It Lead to More Cooperation and Pareto Improvements?

Author

Listed:
  • Pierre von Mouche

    (Wageningen Universiteit)

  • Henk Folmer

    (Wageningen Universiteit and Rijksuniversiteit Groning)

Abstract

Linking of repeated games and exchange of concessions in fields of relative strength may lead to more cooperation and to Pareto improvements relative to the situation where each game is played separately. In this paper we formalize these statements, provide some general results concerning the conditions for more cooperation and Pareto improvements to materialize or not and analyze the relation between both. Special attention is paid to the role of asymmetries.

Suggested Citation

  • Pierre von Mouche & Henk Folmer, 2007. "Linking of Repeated Games. When Does It Lead to More Cooperation and Pareto Improvements?," Working Papers 2007.60, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2007.60
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    References listed on IDEAS

    as
    1. Jean-Pierre Benoît & Vijay Krishna, 1996. "The Folk Theorems for Repeated Games - A Synthesis," Discussion Papers 96-03, University of Copenhagen. Department of Economics.
    2. Michael Finus & Alejandro Caparrós (ed.), 2015. "Game Theory and International Environmental Cooperation," Books, Edward Elgar Publishing, number 15345, June.
    3. Nick Hanley & Henk Folmer (ed.), 1998. "Game Theory and the Environment," Books, Edward Elgar Publishing, number 1083, June.
    4. Spagnolo, Giancarlo, 1999. "On Interdependent Supergames: Multimarket Contact, Concavity, and Collusion," Journal of Economic Theory, Elsevier, vol. 89(1), pages 127-139, November.
    5. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
    6. Henk Folmer & Pierre Mouche & Shannon Ragland, 1993. "Interconnected games and international environmental problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(4), pages 313-335, August.
    7. Just, Richard E. & Netanyahu, Sinaia, 2000. "The importance of structure in linking games," Agricultural Economics, Blackwell, vol. 24(1), pages 87-100, December.
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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