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Computing Supergame Equilibria
Author(s) -
Judd Kenneth L.,
Yeltekin Sevin,
Conklin James
Publication year - 2003
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.1111/1468-0262.t01-1-00445
Subject(s) - set (abstract data type) , mathematical economics , convex set , regular polygon , mathematics , repeated game , mathematical optimization , computer science , game theory , convex optimization , geometry , programming language
We present a general method for computing the set of supergame equilibria in infinitely repeated games with perfect monitoring and public randomization. We present a three‐stage algorithm that constructs a convex set containing the set of equilibrium values, constructs another convex set contained in the set of equilibrium values, and produces strategies that support them. We explore the properties of this algorithm by applying it to familiar games.