--%>

Problem on prisoners dilemma game

Lets assume an infinitely repeated prisoner’s dilemma game by two players. The resulting payoffs at each phase by the actions of two players are illustrated below in the table (payoffs are symbolized like (payoff for player 1, payoff for player 2)). Two players find out their strategies simultaneously and independently to maximize the expected payoffs of their own based on their information. The game is potentially infinitely repeated, though the game ends at a probability of 1–x (0≤1–x≤1) in every phase (that is, such players continue to play this game at the probability of x). There is no discount rate for the future payoffs (that is,  both players weight current and future payoffs equally).

1139_game.jpg

(a) Assume two players adopt a Trigger Strategy (Play C in the first phase In the tth phase(t≥2), if the outcome of all t–1 preceding stages has been (9, 9), then play C; or else play D). Find the range of x which makes cooperation self-sustainable.

(b) Assume two players adopt a Tit for Tat Strategy (TFT) (Play C in the first phase And then, do whatever the other player did at the previous phase). Find the range of x which makes cooperation self-sustainable.

   Related Questions in Business Economics

  • Q : Exploit consumers in highly competitive

    This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price

  • Q : Problem on private resource ownership

    Relative to most of the other countries, the United States encompasses historically relied more greatly on: (1) Public resource ownership and private income distribution. (2) Decentralized decision making and private resource ownership. (3) Exports of textiles, automo

  • Q : What are the scientific method that

    What are the scientific method that Economists use to establish theories, laws, and principles?

  • Q : Real rate of interest Question: Hubbard

    Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  • Q : How market system promotes

    How market system promotes technological improvements?

  • Q : What is the opportunity cost of

    What is the opportunity cost of attending college?  In 2000, nearly 80% of college-educated Americans held jobs, whereas only about 40% of those who did not finish high school held jobs.  How might this difference relate to opportunity costs?

  • Q : What do you mean by Linkages What do

    What do you mean by Linkages?

  • Q : Major type of expenditure at the state

    What is the most important source of revenue and the major type of expenditure at the state level?  

  • Q : Entrepreneurs and business are at the

    Explain the statements: Entrepreneurs and business are at the helm of the economy.

  • Q : How can we calculate EPS How can we

    How can we calculate EPS?