We know that the single-shot prisoner's dilemma game results in a dominant Nash equilibrium strategy that is
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We know that the single-shot prisoner's dilemma game results in a dominant Nash equilibrium strategy that is Pareto inefficient. Suppose we allow the two prisoners to retaliate after their respective prison terms. Formally, what aspect of the game would this affect? Could a Pareto efficient outcome result?
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Intermediate Microeconomics A Modern Approach
ISBN: 9780393927023
7th Edition
Authors: Hal R. Varian
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