Suppose That You Are Playing an Infinitely Repeated Game

question 54

Essay

Suppose that you are playing an infinitely repeated game. You and your opponent agree to restrict output each period to maximize discounted profit. For each period, you and your opponent have to touch a button on a computer screen that selects the level of output, namely, restricted or unrestricted output. Once the button is touched, the output is locked in for the period and cannot be changed. If your opponent has a shaky hand, would you rather use a grim trigger strategy or a tit-for-tat strategy?

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Definitions:

Cytokinesis

Cytokinesis is the division of the cytoplasm of a parental cell into two daughter cells, occurring immediately after nuclear division in the cell cycle.

Midplane

An imaginary plane that divides a body into two equal halves, commonly used in anatomy and developmental biology to describe symmetry.

Bacterial Chromosome

The self-replicating genetic structure of bacteria, usually a circular DNA molecule containing all the necessary information for the life of the cell.

Circular DNA

DNA that is structured in a loop or circle, commonly found in bacteria and some eukaryotes, distinct from the linear DNA of most eukaryotic organisms.