Introduction to Repeated Games in Game Theory
In game theory, repeated games can be classified as either cooperative or non-cooperative. In cooperative games, players are able to communicate and make binding agreements about their joint strategies. In non-cooperative games, players are unable to communicate or make binding agreements, and must rely on their own rationality to determine their strategies.
Cooperative games are often studied in the context of repeated games because they allow players to coordinate and cooperate with each other over time. One example of a cooperative game is the Prisoner's Dilemma, where two players are faced with a choice between cooperating with each other or defecting to try to obtain a better outcome for themselves. If both players defect, they both receive a worse outcome than if they had both cooperated.
Non-cooperative games, on the other hand, are often studied in the context of repeated games because they allow players to develop strategies based on their past interactions. One example of a non-cooperative game is the Battle of the Sexes, where two players must coordinate their choices to obtain the best outcome. If they both choose differently, they receive a worse outcome than if they had both chosen the same option.
In repeated games, players may choose to cooperate or defect depending on their past interactions and the strategies adopted by their opponents. This can lead to the development of cooperative or non-cooperative equilibria, depending on the specific game and the strategies adopted by the players. The study of repeated games provides insights into how players can coordinate and cooperate over time, and how their strategies can be affected by their past interactions and the strategies adopted by their opponents.
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