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A folk theorem for repeated sequential games. (English) Zbl 1030.91008

Summary: We study repeated sequential games where players may not move simultaneously in stage games. We introduce the concept of effective minimax for sequential games and establish a Folk theorem for repeated sequential games. The Folk theorem asserts that any feasible payoff vector where every player receives more than his effective minimax value in a sequential stage game can be supported by a subgame perfect equilibrium in the corresponding repeated sequential game when players are sufficiently patient. The model of repeated sequential games and the concept of effective minimax provide an alternative view to the Anti-Folk theorem of R. Lagunoff and A. Matsui [“Asynchronous choice in repeated coordination games”, Econometrica 65, 1467-1477 (1997)] for asynchronously repeated pure coordination games.

MSC:

91A20 Multistage and repeated games
91A18 Games in extensive form
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