The value of a draw

Casilda Lasso de la Vega and Oscar Volij ()

Economic Theory, 2020, vol. 70, issue 4, No 5, 1023-1044

Abstract: Abstract We model a match as a recursive zero-sum game with three possible outcomes: Player 1 wins, player 2 wins, or there is a draw. We focus on matches whose point games also have three possible outcomes: Player 1 scores the point, player 2 scores the point, or the point is drawn in which case the point game is repeated. We show that a value of a draw can be attached to each state so that an easily computed stationary equilibrium exists in which players’ strategies can be described as minimax behavior in the point games induced by these values.

Keywords: Matches; Stochastic games; Recursive games; Draws (search for similar items in EconPapers)
JEL-codes: C72 C73 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s00199-018-1140-x

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