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Reciprosity and Cooperation in Repeated Coordination Games: The Blurry Belief Approach

  • Alvaro Sandroni
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    Two long lived players play a repeated coordination game. Players do not specify a single (and correct) probability to each event. They have a vague notion about the evolution of the play, called blurry beliefs, which guide their behavior. General conditions that ensure cooperation are investigated. Key words: Repeated Games, Learning, Cooperation, Bounded Rationality, Equilibrium Selection.

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    File URL: http://www.kellogg.northwestern.edu/research/math/papers/1200.pdf
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    Paper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1200.

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    Date of creation: Nov 1997
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    Handle: RePEc:nwu:cmsems:1200
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    1. Anderlini, L. & Sabourian, H., 1991. "Cooperation and Effective Computability," Papers 167, Cambridge - Risk, Information & Quantity Signals.
    2. Crawford, Vincent P & Haller, Hans, 1990. "Learning How to Cooperate: Optimal Play in Repeated Coordination Games," Econometrica, Econometric Society, vol. 58(3), pages 571-95, May.
    3. Kalai, Ehud & Lehrer, Ehud, 1993. "Rational Learning Leads to Nash Equilibrium," Econometrica, Econometric Society, vol. 61(5), pages 1019-45, September.
    4. Guth, Werner, 1995. "An Evolutionary Approach to Explaining Cooperative Behavior by Reciprocal Incentives," International Journal of Game Theory, Springer, vol. 24(4), pages 323-44.
    5. Ehud Kalai & Ehud Lehrer, 1991. "Subjective Equilibrium in Repeated Games," Discussion Papers 981, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    6. Matsui, Akihiko, 1991. "Cheap-talk and cooperation in a society," Journal of Economic Theory, Elsevier, vol. 54(2), pages 245-258, August.
    7. M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
    8. J. Watson & P. Battigalli, 2010. "On 'Reputation' Refinements with Heterogeneous Beliefs," Levine's Working Paper Archive 582, David K. Levine.
    9. Georg Kirchsteiger & Ernst Fehr & Simon Gächter, 1997. "Reciprocity as a contract enforcement device: experimental evidence," ULB Institutional Repository 2013/5911, ULB -- Universite Libre de Bruxelles.
    10. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
    11. Crawford, Vincent P, 1995. "Adaptive Dynamics in Coordination Games," Econometrica, Econometric Society, vol. 63(1), pages 103-43, January.
    12. Akihiko Matsui, 1989. "Cheap Talk and Cooperation in the Society," Discussion Papers 848, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    13. J. Watson, 2010. "A ‘Reputation’ Refinement without Equilibrium," Levine's Working Paper Archive 580, David K. Levine.
    14. Crawford, Vincent P., 1991. "An "evolutionary" interpretation of Van Huyck, Battalio, and Beil's experimental results on coordination," Games and Economic Behavior, Elsevier, vol. 3(1), pages 25-59, February.
    15. Aumann, Robert J. & Sorin, Sylvain, 1989. "Cooperation and bounded recall," Games and Economic Behavior, Elsevier, vol. 1(1), pages 5-39, March.
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