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Game Theory II
On repeated games
Repeated games are a class of dynamic games where players play a fixed game (called a stage game) repeatedly over time. Despite their simple definition, repeated games admit various equilibrium strategies that cannot be explained if we analyze stage games separately. On the other hand, in many environments, so-called folk theorems hold, and the limit set of equilibrium payoffs is characterized by feasibility and individual rationality. Repeated games provide a basic framework to understand cartel and collusion as well as one of the evolutionary explanations for why humans and vampire bats sometimes behave altruistically.
In this class, we study repeated games through Mailath and Samuelson (2006) and more recent papers.
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