Category: Game Theory

This is a part of my Game Theory Series. I have several equity analyses in the works, but it’s fun to spin the brain in a different direction. Please let me know if you have any questions or comments! There are mixed views about the President, but he tweets enough content to fuel several blog […]

Let’s say that there are three fishermen, and each day they individually decide how many boats to send out to catch fish in the local lake. A fisherman can send out one or two boats, and the daily cost of a boat is $15. The more boats sent out, the more fish are caught. However, […]

Consider the infinitely repeated version of the symmetric two-player stage game below. The first number in a cell is player 1’s single-period payoff. Suppose the stage game is repeated three times and each player’s payoff is the sum of the single-period payoffs. Assume that past actions are common knowledge.

Consider the infinitely repeated version of the symmetric two-player stage game in the following figure. The first number in a cell is player 1’s single- period payoff. The second number in a cell is player 2’s single period payoff.