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
Unfortunately this paper is not available online. Please contact us to order a hardcopy.
SFB 303 Homepage