SFB 303 Discussion Paper No. A - 84

Author: van Damme, Eric
Title: Renegotiation-Proof Equilibria in Repeated Prisoners` Dilemma
Abstract: In this note is shown that the requirement of renegotiation proofness does not eliminate any subgame perfect equilibrium outcome of the repeated prisoners' dilemma. Specifically it is demonstrated that, when players are sufficiently patient, any feasible and individually rational outcome can be sustained by means of an equilibrium in which the punishing player always profits by carrying out the punishment.
Creation-Date: October 1986
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