"That strategic rivalry in a long-term relationship may differ from that of a one-shot game is by now quite a familiar idea. Repeated play allows players to respond to each other’s actions, and so each player must consider the reactions of his opponents in making his decision. The fear of retaliation may thus lead to outcomes that otherwise would not occur. The most dramatic expression of this phenomenon is the celebrated "Folk Theorem." An outcome that Pareto dominates the minimax point is called individually rational. The Folk Theorem asserts that any individually rational outcome can arise as a in infinitely repeated games with sufficiently little discounting."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Academics from the United StatesJews from the United StatesEconomists from the United StatesGame theoristsNobel laureates in Economics
Original Language: English
Available Languages (1)
Sources
Revision History
No revisions have been submitted for this quote.
Categories
Eric Maskin
5 quotes on TrueQuotesView all quotes by Eric Maskin →
Related Quotes
"We investigate how the degree to which credit markets are centralized affects efficiency when there is asymmetric inf…"
"After society has decided on a social choice rule-a recipe for choosing the optimal social alternative (or alternativ…"
"How could such industries as software, semiconductors, and computers have been so innovative despite historically wea…"
"It’s true that my initial training was in mathematics. However, almost by accident, I happened to take a course from …"
"For him delicious flavors dwell In books as in old Muscatel."
"And in the evening, everywhere Along the roadside, up and down, I see the golden torches flare Like lighted street-la…"
"Song like a rose should be; Each rhyme a petal sweet; For fragrance, melody, That when her lips repeat The words, her…"
"The hunter catches a dreadful prey, the seaman steers his ship into an unspeakable harbor, the plowman sows and reaps…"
"You are the king no doubt, but in one respect, at least, I am your equal: the right to reply. I claim that privilege …"
"When Hector heard that challenge he rejoiced and right in the no man's land along his lines he strode, gripping his s…"