COOPERATION AND EFFECTIVE COMPUTABILITY

Citation
L. Anderlini et H. Sabourian, COOPERATION AND EFFECTIVE COMPUTABILITY, Econometrica, 63(6), 1995, pp. 1337-1369
Citations number
42
Categorie Soggetti
Economics,"Social Sciences, Mathematical Methods","Mathematical, Methods, Social Sciences
Journal title
ISSN journal
00129682
Volume
63
Issue
6
Year of publication
1995
Pages
1337 - 1369
Database
ISI
SICI code
0012-9682(1995)63:6<1337:CAEC>2.0.ZU;2-B
Abstract
A common interest game is a game in which there exists a unique pair o f payoffs which strictly Pareto-dominates all other payoffs. We consid er the undiscounted repeated game obtained by the infinite repetition of such a two-player stage game. We show that if supergame strategies are restricted to be computable within Church's thesis, the only pair of payoffs which survives any computable tremble with sufficiently lar ge support is the Pareto-efficient pair. The result is driven by the a bility of the players to use the early stages of the game to communica te their intention to play cooperatively in the future.