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Cooperation and Effective Computability

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  • Anderlini, L.
  • Sabourian, H.

Abstract

A common interest game is a game in which there exists a unique pair of payoffs which strictly Pareto dominates all other payoffs. The authors consider the undiscounted repeated game obtained by the infinite repetition of such a two-player stage game. They show that, if supergame strategies are restricted to be computable within Church's thesis, the only pair of payoffs that survives any computable tremble with sufficiently large support is the Pareto-efficient pair. The result is driven by the ability of the players to use the early stages of the game to communicate their intention to play cooperatively in the future. Copyright 1995 by The Econometric Society.
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Suggested Citation

  • Anderlini, L. & Sabourian, H., 1991. "Cooperation and Effective Computability," Papers 167, Cambridge - Risk, Information & Quantity Signals.
    • Handle: RePEc:fth:cambri:167
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    Cited by:

    1. Barlo, Mehmet & Carmona, Guilherme & Sabourian, Hamid, 2016. "Bounded memory Folk Theorem," Journal of Economic Theory, Elsevier, vol. 163(C), pages 728-774.
    2. Kumabe, Masahiro & Mihara, H. Reiju, 2008. "Computability of simple games: A characterization and application to the core," Journal of Mathematical Economics, Elsevier, vol. 44(3-4), pages 348-366, February.
    3. Anderlini, Luca, 1998. "Forecasting errors and bounded rationality: An example," Mathematical Social Sciences, Elsevier, vol. 36(2), pages 71-90, September.
    4. Roman, Mihai Daniel, 2008. "Entreprises behavior in cooperative and punishment‘s repeated negotiations," MPRA Paper 37527, University Library of Munich, Germany, revised 05 Jan 2009.
    5. Fudenberg, Drew & Levine, David K., 1995. "Consistency and cautious fictitious play," Journal of Economic Dynamics and Control, Elsevier, vol. 19(5-7), pages 1065-1089.
    6. Luca Anderlini (Georgetown University), Dino Gerardi (Yale University), Roger Lagunoff (Georgetown University), 2004. "The Folk Theorem in Dynastic Repeated Games," Working Papers gueconwpa~04-04-09, Georgetown University, Department of Economics.
    7. Guilfoos, Todd & Kurtz, Kenneth J., 2017. "Evaluating the role of personality trait information in social dilemmas," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 68(C), pages 119-129.
    8. Anderlini, Luca & Sabourian, Hamid, 2001. "Cooperation and computability in n-player games," Mathematical Social Sciences, Elsevier, vol. 42(2), pages 99-137, September.
    9. Jones, Garett, 2008. "Are smarter groups more cooperative? Evidence from prisoner's dilemma experiments, 1959-2003," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 489-497, December.
    10. Anderlini, Luca, 1999. "Communication, Computability, and Common Interest Games," Games and Economic Behavior, Elsevier, vol. 27(1), pages 1-37, April.
    11. William R. Zame & John H. Nachbar, 1996. "Non-computable strategies and discounted repeated games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(1), pages 103-122.
    12. Roman, Mihai Daniel, 2010. "A game theoretic approach of war with financial influences," MPRA Paper 38389, University Library of Munich, Germany.
    13. Blume, Lawrence & Easley, David & Kleinberg, Jon & Kleinberg, Robert & Tardos, Éva, 2015. "Introduction to computer science and economic theory," Journal of Economic Theory, Elsevier, vol. 156(C), pages 1-13.
    14. Alvaro Sandroni, 1997. "Reciprosity and Cooperation in Repeated Coordination Games: The Blurry Belief Approach," Discussion Papers 1200, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    15. Amit Pazgal, 1995. "Satisficing Leads to Cooperation in Mutual Interests Games," Discussion Papers 1126, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    16. Markose, Sheri M., 2004. "Novelty in complex adaptive systems (CAS) dynamics: a computational theory of actor innovation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 41-49.
    17. Olivier Gossner & Penélope Hernández, 2003. "On the Complexity of Coordination," Mathematics of Operations Research, INFORMS, vol. 28(1), pages 127-140, February.
    18. Hu, Tai-Wei, 2014. "Unpredictability of complex (pure) strategies," Games and Economic Behavior, Elsevier, vol. 88(C), pages 1-15.
    19. Al-Najjar, Nabil I. & Casadesus-Masanell, Ramon & Ozdenoren, Emre, 2003. "Probabilistic representation of complexity," Journal of Economic Theory, Elsevier, vol. 111(1), pages 49-87, July.

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    Keywords

    game theory ; economic models;

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