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Repeated implementation and complexity considerations
Authors:Hannu Vartiainen
Institution:1.Yrj? Jahnsson Foundation,Helsinki,Finland
Abstract:A game form is commitment-free if single actions of players do not have physical consequences, i.e., affect the continuation game. Such game can be thought to represent inifinite interaction with complete patience. A choice rule can be Nash implemented via a commitment-free mechanism if and only if it coincides with the feasible set of a normal form game. However, when players are complexity averse (in the lexicographic sense), then any Nash implementable choice rule becomes available. I am very grateful to Matt Jackson and a referee for their comments. I also thank Klaus Kultti and Hannu Salonen for useful conversations.
Keywords:Repeated interaction  Commitment-freeness  Nash implementation  Complexity considerations
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