Overview
Today we look at repeated games.
Readings
- Ch. 3 in Dixit and Nalebuff (paperback)
- Chs. 10 in Dixit, Skeath, and Riley (textbook)
Recommended/Primary Sources
- Axelrod, 1984, The Evolution of Cooperation
- Klein, Crawford, and Alchian (1972), “Vertical Integration, Appropriable Rents, and the Competitive Contracting Process”
- Klein and Leffler (1981), “The Role of Market Forces in Assuring Contractual Performance”
- Milgom, North, and Weingast (1990), “The Role of Institutions in the Revival of Trade: The Law Merchant, Private Judges, and the Champagne Fairs”
- Benson (1989), “The Spontaneous Evolution of Commercial Law”
- fivethirtyeight: How to Win a Trade War
The fivethirtyeight article contains a simulation based on Axelrod’s prisoners’ dilemma tournament (though, in the context of international trade/trade wars) where you can choose your strategy and play with a computer (following their own strategy) to see how you fare after 100 rounds.
Slides
Below, you can find the slides in two formats. Clicking the image will bring you to the html version of the slides in a new tab. Note while in going through the slides, you can type h to see a special list of viewing options, and type o for an outline view of all the slides.
The lower button will allow you to download a PDF version of the slides. I suggest printing the slides beforehand and using them to take additional notes in class (not everything is in the slides)!
