Chade, Hector; Prokopovych, Pavlo; Smith, Lones - Cowles Foundation for Research in Economics, Yale University - 2006
We study infinitely repeated games with observable actions, where players have present-biased (so-called beta-delta) preferences. We give a two-step procedure to characterize Strotz-Pollak equilibrium payoffs: compute the continuation payoff set using recursive techniques, and then use this set...