When and How the Punishment Must Fit the Crime

Arbeitspapier

In repeated normal-form (simultaneous-move) games, simple penal codes (Abreu, 1986, 1988) permit an elegant characterization of the set of subgame-perfect outcomes. We show that the logic of simple penal codes fails in repeated extensive-form games. By means of examples, we identify two types of settings in which a subgame-perfect outcome may be supported only by a profile with the property that the continuation play after a deviation is tailored not only to the identity of the deviator, but also to the nature of the deviation.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 5225

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Game Theory and Bargaining Theory: General ; Noncooperative Games ; Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
• Thema: simple penal code ; subgame perfect equilibrium ; repeated extensive game ; optimal punishment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Mailath, George J. ; Nocke, Volker ; White, Lucy
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/108773
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ