A Remark on Infinitely Repeated Extensive Games
Let Gamma be a game in extensive form and G be its reduced normal form game. Let Gamma ^infinity (delta) and G^infinity (delta) be the infinitely repeated game version of Gamma and G respectively, with common discount factor delta. This note points out that the set of SPE payoff vectors of Gamma^infinity (delta) might be different from that of G sub infinity (delta), even when delta is arbitrarily close to 1. This difference can be substantial when G fails to satisfy the "dimensionality" condition (a-la Fundenberg and Masking (1986) or Abreu, Dutta and Smith (1992)).
|Date of creation:||Aug 1992|
|Date of revision:|
|Contact details of provider:|| Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014|
Web page: http://www.kellogg.northwestern.edu/research/math/
More information through EDIRC
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. Aumann & Lloyd S. Shapley, 1992.
"Long Term Competition-A Game Theoretic Analysis,"
UCLA Economics Working Papers
676, UCLA Department of Economics.
- Robert J. Aumann & Lloyd S. Shapley, 2013. "Long Term Competition -- A Game-Theoretic Analysis," Annals of Economics and Finance, Society for AEF, vol. 14(2), pages 627-640, November.
- Abreu, Dilip & Rubinstein, Ariel, 1988. "The Structure of Nash Equilibrium in Repeated Games with Finite Automata," Econometrica, Econometric Society, vol. 56(6), pages 1259-81, November.
- Ariel Rubinstein, 1997.
"Finite automata play the repeated prisioners dilemma,"
Levine's Working Paper Archive
1639, David K. Levine.
- Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, vol. 39(1), pages 83-96, June.
When requesting a correction, please mention this item's handle: RePEc:nwu:cmsems:989. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fran Walker)
If references are entirely missing, you can add them using this form.