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Game Theory by Mark L. Burkey

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Chapter 6

Repeated Games and ­Cooperation

Put on then, as God’s chosen ones, holy and beloved, compassionate hearts, kindness, humility, meekness, and patience.

—Colossians 3:12

In the Prisoner’s Dilemma-type game we saw the clear idea that even though by cooperating the outcome could be much better for the players, when the players make the choice in their rational self-interest we end up at a “Bad” equilibrium. Additionally, we saw that these players have a strong incentive to always confess because it is their dominant strategy.

However, in the real world, we do see people cooperate in such situations. It has been found that one of the strongest cooperation mechanisms is repeated interaction. We are much more willing to cooperate with people ...

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