The absent-minded prisoner
If one of two rational players is absent-minded for at least three rounds, cooperation in a prisoners dilemma with a finite number of repetitions is possible. If both players are absentminded, even two rounds of absent-mindedness can be enough for cooperation in these rounds and all rounds before. Sufficient conditions for the existence of a cooperative equilibrium are derived, a plausible interpretation of absent-mindedness in the case of many repetitions is given.
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- Piccione, Michele & Rubinstein, Ariel, 1997.
"The Absent-Minded Driver's Paradox: Synthesis and Responses,"
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- David Kreps & Paul Milgrom & John Roberts & Bob Wilson, 2010.
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Levine's Working Paper Archive
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- Aumann, Robert J. & Hart, Sergiu & Perry, Motty, 1997. "The Forgetful Passenger," Games and Economic Behavior, Elsevier, vol. 20(1), pages 117-120, July.
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"The Absent-Minded Centipede,"
SFB 373 Discussion Papers
1996,98, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Rubinstein, Ariel, 1995.
"On the Interpretation of Decision Problems with Imperfect Recall,"
Mathematical Social Sciences,
Elsevier, vol. 30(3), pages 324-324, December.
- Piccione, Michele & Rubinstein, Ariel, 1997. "On the Interpretation of Decision Problems with Imperfect Recall," Games and Economic Behavior, Elsevier, vol. 20(1), pages 3-24, July.
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