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Repeated Games definitions

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  • Repeated Game
    A scenario where the same strategic interaction occurs multiple times, allowing players to adjust actions based on past outcomes.
  • One-Time Game
    A situation where participants interact only once, making decisions without considering future repercussions.
  • Tit for Tat
    A strategy where a player mirrors the opponent's previous action, fostering cooperation or retaliation as needed.
  • Trigger Strategy
    A plan where cooperation continues until a single defection, after which perpetual non-cooperation follows.
  • Collusion
    An arrangement where parties coordinate actions to achieve mutually beneficial outcomes, often maximizing joint payoffs.
  • Retaliation
    A response mechanism where a player reacts to an opponent's previous unfavorable action, often to discourage future defection.
  • Cooperation
    A behavioral choice where parties work together for higher collective benefits rather than pursuing individual advantage.
  • Defection
    A choice to break from a collaborative agreement, typically to seek personal gain at the expense of group outcomes.
  • Credibility
    The quality that ensures threats or promises in strategic interactions are believable and likely to be followed through.
  • Equilibrium
    A stable outcome in strategic settings where no participant has an incentive to change their chosen action.
  • Aggregate Demand
    The total quantity of goods and services demanded across an economy at a given overall price level and time.
  • Aggregate Supply
    The total output of goods and services that producers in an economy are willing and able to supply at a given price level.
  • Joint Payoff
    The combined benefit or reward received by all participants in a strategic interaction when they coordinate actions.
  • Strategic Interaction
    A situation where the outcome for each participant depends on the choices made by all involved parties.