http://gametheory101.com/courses/game-theory-101/discount-factors/ WebDefinition Let G = (N, A, u) be a strategic game. Let T . be finite or infinite. The . T-repeated . game . of . G . for the . discount factor . δ . is the extensive game in which: the set of players is . N. the set of terminal histories is the set of infinite sequences (a. 1, a. 2, . . .) of action profiles in G

Repeated Games - New York University

Web-r: the discount rate. Repeated Prisoner’s dilemma: In the game known as the Prisoner’s dilemma, the Nash equilibrium is Confess-Confess (defect-defect). In order to see what equilibrium will be reached in a repeated … WebNov 21, 2013 · If a 7 percent discount rate makes people indifferent between a benefit now versus a benefit later (for example, indifferent between $100 today versus $107 a year from now), then 7 percent is the ... how to calculate average monthly rainfall

Game theory worked example from AP Microeconomics

WebJan 2, 2008 · Since the stage game in "B" is asymmetric for the two players you will need to find each players discount rate." Basically I thought we are supposed to take the cooperative outcome if it were paid indefinably and compare that with the payoff if they deviated in period one thus playing uncooperative there after. Webnow is δtx and that the discount factor δ ∈ [0,1). If payoffs are monetary, we typically assume that δ = 1 1+r, where r is the interest rate at which the player can borrow or lend. In that case, δ tx is the amount of money that we can borrow today against the future payoff x, and we call δtx the present value of x. WebAn introduction to game theory. by Martin J. Osborne. The solutions are now available here . how to calculate average monthly sales dax