Cooperation for pennies: a note on epsilon-equilibria
Article Abstract:
Epsilon-equilibria can often sustain full cooperation up to very near the end of the horizon in finitely repeated smooth games, with very minimal amounts of irrationality. A simple example of the oligopoly model considered by Radner, who advanced the epsilon-equilibria approach, is examined to illustrate how powerful the method is. It is shown that epsilon-equilibria can support complete cooperation worth $20,000 until the fifth period before the end of the horizon. Behavior is moreover shown to be highly insensitive to the amount of irrationality even near the end of the horizon.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Coordination and weak announcement proofness: two comments on "Refining Cheap-Talk Equilibria."((article by Matthews, S.A., Okuno-Fujiwara, M., and Postlewaite, A. in vol. 55 of Journal of Economic Theory, p.247))
Article Abstract:
A re-examination of the 'weak announcement proofness' criterion formulated by Steven Matthews and others is presented. The re-examination shows that this criterion is not always weaker than announcement proofness and in the class of simple sender-receiver games. Matthews et al.'s weak announcement proofness concept, as suggested by the first result, may require a new name. The name 'equilibrium-announcement proofness' is appropriate since an extra condition, C3A, is added, making strong credibility seem stronger than credibility.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Hope springs eternal: learning and the stability of cooperation in short horizon repeated games
Article Abstract:
The author shows the relationship between lack of cooperation and slowness of learning.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2003
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Culture, genes and cooperation: comment on Henrich. Markets, hierarchies, and information: on a paradox in the economics of organization
- Abstracts: Random perturbations of deterministic equilibria. On the consistency of stationary Markov equilibria with an exogenous distribution
- Abstracts: Inflation targeting as a monetary policy rule. Comment on: The future of monetary aggregates in monetary policy analysis
- Abstracts: Polish bank consolidation and foreign competition: creating a market-oriented banking sector. Privatization and efficient contracts: the worker's stake in the transition
- Abstracts: Professional etiquette for the mature economist. What is discrimination? Gender in the American Economic Association, 1935-2004