On the Irrelevance of Risk Attitudes in Repeated Two-Outcome Games.

Wooders, J.; Shachat, J.

Abstract

We study equilibrium and maximin play in supergames consisting of the sequential play of a finite collection of stage games, where each stage game has two outcomes for each player. We show that for two-player supergames in which each stage game is strictly competitive, in any Nash equilibrium of the supergame, play at each stage is a Nash equilibrium of the stage game provided preferences over certain supergame outcomes satisfy a natural monotonicity condition. In particular, equilibrium play does not depend on risk attitudes. We establish an invariance result for games with more than two players when the solution concept is subgame perfection.

Citation

Wooders, J., & Shachat, J. (2001). On the Irrelevance of Risk Attitudes in Repeated Two-Outcome Games. Games and Economic Behavior, 34(2), 342-363. https://doi.org/10.1006/game.2000.0808

• Journal Article Type: Article
• Publication Date: 2001-02
• Deposit Date: Sep 17, 2014
• Journal: Games and Economic Behavior
• Print ISSN: 0899-8256
• Electronic ISSN: 1090-2473
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 34
• Issue: 2
• Pages: 342-363
• DOI: https://doi.org/10.1006/game.2000.0808
• Public URL: https://durham-repository.worktribe.com/output/1423464