Introducing Game Theory: A Graphic Guide (Introducing...) by Ivan Pastine & Tuvana Pastine
Author:Ivan Pastine & Tuvana Pastine [Pastine, Ivan]
Language: eng
Format: epub
ISBN: 9781785780837
Publisher: Icon Books Ltd
Published: 2017-03-02T06:00:00+00:00
We are both in this business for the long haul. Isn’t there are way to play nice instead of this cut-throat competition?
Would we observe cooperation in equilibrium in the Prisoners’ Dilemma if players interact repeatedly?
Imagine that both players know that they will play the Prisoners’ Dilemma Game not once but twice. To find the equilibrium of the game with repeated interaction, we first predict the equilibrium of the game in the last round. And then we reason what the equilibrium would be in the first round. This line of reasoning is called backward induction.
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