Using turn taking to achieve intertemporal cooperation and symmetry in infinitely repeated 2 x 2 games

Sau-Him Paul Lau, Vai-Lam Mui

Research output: Contribution to journalArticleResearchpeer-review

13 Citations (Scopus)

Abstract

Turn taking is observed in many field and laboratory settings captured by various widely studied 2 x 2 games. This article develops a repeated game model that allows us to systematically investigate turn-taking behavior in many 2 x 2 games, including the battle of the sexes, the game of chicken, the game of common-pool-resources assignment, and a particular version of the prisoners? dilemma. We consider the turn taking with independent randomizations (TTIR) strategy that achieves three objectives: (a) helping the players reach the turn-taking path, (b) resolving the question of who takes the good turn first, and (c) deterring defection. We determine conditions under which there exists a unique TTIR strategy profile that can be supported as a subgame-perfect equilibrium. We also show that there exist conditions under which an increase in the degree of conflict of the stage game leads to a decrease in the expected number of periods in reaching the turn-taking path.
Original languageEnglish
Pages (from-to)167 - 188
Number of pages22
JournalTheory and Decision
Volume72
Issue number2
DOIs
Publication statusPublished - 2012

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