Changes
Jump to navigation
Jump to search
De Figueiredo (2002) - Electoral Competition Political Uncertainty And Policy Insulation (view source)
Revision as of 19:22, 28 May 2010
, 19:22, 28 May 2010→The Reciprocity Game (RG)
The cooperative equilibrium is one where both players play <math>NO\,</math> in every stage. This can be sustained by a Grim Trigger where a player plays <math>O\,</math> for all time if either player has played an <math>NO\,</math> at any time previous, provided that <math>\delta,\gamma \mbox{ and } \beta\,</math> are sufficiently high. To prove this, recall that the [http://en.wikipedia.org/wiki/Geometric_series#Sum sum of a geometric series] is given by:
:<math>s \;=\; \sum_{k=0}^\infty ar^k = \frac{a}{1-r}.\; \mbox{ or }\; \sum_{k=m}^\infty ar^k=\frac{ar^m}{1-r}</math>
provided that <math>r\,</math> is less than 1 (which is needed for convergence).
