could the theory of subgame perfect equilibrium in repeated games teach us something about reciprocity, fairness,...

could the theory of subgame perfect equilibrium in repeated games teach us something about reciprocity, fairness, social justice equity, or love?

Expert Solution

In a game theory a Subgame perfect equilibrium is a refinement of a Nash equilibrium used in dynamic games.A strategy profile is a Subgame perfect equilibrium if it represent a Nash equilibrium of every sub game of original game.

For finitely repeated game if a stage has only one unique Nash equilibrium the Subgame perfect equilibrium is to play without considering past actions, treating the current Subgame as a one shot game hence theory of Subgame perfect equilibrium in repeated game teaches us something about reciprocity,fairness,social justice equity and love.

Rahul Sunny answered 2 years ago

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