Voluntarily Separable Repeated Games with Social Norms
We extend the voluntarily separable repeated Prisoner's Dilemma (Fujiwara-Greve and Okuno-Fujiwara, 2009) to continuous actions. We show that there is a (constrained) efficient bimorphic equilibrium which is robust under evolutionary pressure. It consists of a cooperative strategy and a myopic defection strategy so that our model provides a foundation to incomplete information models as well.
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- Swinkels, J., 1991.
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- Takako Fujiwara-Greve & Masahiro Okuno-Fujiwara, 2009.
"Voluntarily Separable Repeated Prisoner's Dilemma,"
Review of Economic Studies,
Oxford University Press, vol. 76(3), pages 993-1021.
- Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
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