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A game theoretic approach to lowering incentives to violate speed limits in Finland

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  • Mika Sutela
  • Nino Lindstrom

Abstract

We expand on earlier research on the topic by discussing an infinitely repeated game model with a subgame perfect equilibrium strategy profile (SPE) as a solution concept that diminishes incentives to violate speed limits in a carrot and stick fashion. In attempts to construct an SPE strategy profile, the initial state is chosen such that the drivers are playing a mixed strategy whereas the police is not enforcing with certainty. We also postulate a short period version of the repeated game with generalized stage game payoffs. For this game, we construct a multistage strategy profile that is a Nash equilibrium but not an SPE. Some solution candidates are excluded by showing that they do not satisfy a one shot deviation property that is a necessary condition for an SPE profile in a repeated game of perfect information.

Suggested Citation

  • Mika Sutela & Nino Lindstrom, 2024. "A game theoretic approach to lowering incentives to violate speed limits in Finland," Papers 2402.09556, arXiv.org.
    • Handle: RePEc:arx:papers:2402.09556
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    References listed on IDEAS

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    1. Schafer, Joseph A. & Mastrofski, Stephen D., 2005. "Police leniency in traffic enforcement encounters: Exploratory findings from observations and interviews," Journal of Criminal Justice, Elsevier, vol. 33(3), pages 225-238.
    2. Matthew G. Nagler, 2013. "Does Social Capital Promote Safety On The Roads?," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1218-1231, April.
    3. Bauernschuster, Stefan & Rekers, Ramona, 2022. "Speed limit enforcement and road safety," Journal of Public Economics, Elsevier, vol. 210(C).
    4. Drew Fudenberg & Eric Maskin, 2008. "The Folk Theorem In Repeated Games With Discounting Or With Incomplete Information," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 11, pages 209-230, World Scientific Publishing Co. Pte. Ltd..
    5. Aaron Chalfin & Justin McCrary, 2017. "Criminal Deterrence: A Review of the Literature," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 5-48, March.
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