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JOURNALS // Trudy Instituta Matematiki i Mekhaniki UrO RAN // Archive

Trudy Inst. Mat. i Mekh. UrO RAN, 2011 Volume 17, Number 1, Pages 201–216 (Mi timm683)

Equilibrium behaviors of the players in an infinitely repeated $2\times2$ $\varepsilon$-best response game

A. V. Raigorodskaya

M. V. Lomonosov Moscow State University, Faculty of Computational Mathematics and Cybernetics

Abstract: A stochastic infinitely repeated $\varepsilon$-best response game is analyzed, in which a $2\times2$ bimatrix game is played sequentially in an infinite number of rounds. The limits of the players' expected average gains in the first $n$ rounds of the game as $n\to\infty$ are calculated. These limits are taken as the players' expected average gains in the infinitely repeated $\varepsilon$-best response game. The players' Nash-equilibrium behaviors are described. It is shown that the players' equilibrium gains exceed their gains in the deterministic best-response game.

Keywords: repeated games, bimatrix games, best response.

UDC: 517.83

Received: 01.12.2010



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