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We challenge the global optimality of one-shot punishments in infinitely repeated games with discounting. Specifically, we show that the stick-and-carrot punishment à la Abreu (1986) may not be globally optimal. We prove our result by investigating tacit collusion in the infinite repetition of...
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Discrete Markov Processes and Numerical Algorithms for Markov Chains -- Markov Decision Processes and Stochastic … decision problems and determining Nash equilibria for related stochastic games with average and total expected discounted … and graduate students who are interested in Markov theory, control theory, optimization and games. …
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The survey presents recent results in the theory of two-person zero-sum repeated games and their connections with …
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