--%>

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 : Illustrate the advantage of corporate

    Illustrate the advantage of corporate form of organization?

  • Q : Perfect competition and efficiency

    Which of the given describes a condition in which a good or service is produced at the lowest probable cost: w) productive efficiency. x) allocative efficiency. y) marginal efficiency. z) profit maximization Please

  • Q : Heterodox approach for more production

    From the heterodox approach, what options does the enterprise need to produce more output? What effect do these options put on its cost structure?

  • Q : What are the dependencies in U.S. and

    What are the dependencies in U.S. and World Trade?

  • Q : Decentralized a virtue of capitalism

    The idea which a virtue of capitalism is decentralized its decision making emerged while: (1) social philosophers looked for alternatives to feudal kings like economic regulators. (2) Russian imperialism fostered anti-communist sentiment after World W

  • Q : Calculate Equilibrium Quantity and Price

    1. The owner of a firm calculates that next year's profit will be $1,000. Each successive year profit will increase by 10% (i.e. year 2: $1100; year 3: $1210 and so on.) At the end of the 5th year the firm could be sold for $20,000. A) if the appropriate di

  • Q : Explain determining the types of the

    Explain determining the types of the various products that will be produced?

  • Q : Comparative Advantage-Mutual exchange

    Mutually beneficial exchange is probable whenever relative production costs vary previous to trade, is a manner to state the law of: (1) Positive profits from trade. (2) Comparative benefit. (3) Specialization and Division. (4) Purchasing power parity

  • Q : Importance of Price Earnings Ratio

    Write down the importance of Price Earnings Ratio?

  • Q : High-convexity portfolios outperform

    An important drawback of "traditional yield spread analysis" is the "failure to take into account future interest rate volatility that would affect the expected cash flow" of a fixed income security. How does option adjusted spread analysis correct for the "failure" of traditional yield spread analy