Abstract
This paper dealswith 2-player coordination games with vanishing actions, which are repeated games where all diagonal payoffs are strictly positive and all nondiagonal payoffs are zero with the following additional property: At any stage beyond r, if a player has not played a certain action for the last r stages, then he unlearns this action and it disappears from his action set. Such a game is called an r -restricted game. To evaluate the stream of payoffs we use the average reward. For r = 1 the game strategically reduces to a one-shot game and for r >= 3 in Schoenmakers ( Int Game Theory Rev 4: 119-126, 2002) it is shown that all payoffs in the convex hull of the diagonal payoffs are equilibrium rewards. In this paper for the case r = 2 we provide a characterization of the set of equilibrium rewards for 2 x 2 games of this type and a technique to find the equilibrium rewards in m xm games. We also discuss subgame perfection.
Original language | English |
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Pages (from-to) | 769-789 |
Number of pages | 21 |
Journal | International Journal of Game Theory |
Volume | 40 |
Issue number | 4 |
DOIs | |
Publication status | Published - Nov 2011 |
Keywords
- Game theory
- Repeated games
- Coordination games
- Nash equilibrium
- Subgame perfect equilibrium
- 2-PLAYER STOCHASTIC GAMES