Repeated games:

First we will deal with games, which are repeated twice. Only then we will explore finitely repeated games and finally infinitely repeated games. We will discuss celebrated Friedman's theorem. You will be given an application of the theory, what happens when the Cournot duopoly model is analyzed under infinite repetition. You will apply game theory to bargaining problems, application of 'which is rampant in almost every social, economic and commercial issue, domestic as well as international.

重复游戏仅仅是舞台上的重复game over time. The stage game is repeated after the payoffs have been collected. Therefore, analysis of these games involve a lot of considerations, such as present value of the payoff, strategies are also complicated. By appropriately choosing the strategy, players can ensure that in a repeated game the outcome at each stage is not the Nash equilibrium of the stage game. Any feasible payoff which gives each player more (or at least equal) payoff than the Nash equilibrium gives can be achieved as the outcome of the game given some restrictions on the discount factor.

Bargaining is a most frequent problem in economics, society and business. Bargaining solution can be achieved involving two persons using game theory. A bargaining solution, which satisfies the axioms stated by Nash, is called the Nash bargaining solution. In infinitely repeated game, players can achieve more than the Nash equilibrium permits by colluding among themselves.