Equal Pay for all Prisoners/ The Logic of Contrition

M.C. Boerlijst, M.A. Nowak and K. Sigmund

Working Papers from International Institute for Applied Systems Analysis

Abstract: This report deals with two questions concerning the emergence of cooperative strategies in repeated games. The first part is concerned with the Perfect Folk Theorem and presents a vast class of equilibrium solutions based on Markovian strategies. Simple strategies, called equalizers, are introduced and discussed: if players adopt such strategies, the same payoff results for every opponent. The second part analyzes strategies implemented by finite automata. Such strategies are relevant in an evolutionary context; an important instance is called Contrite Tit For Tat. In populations of players adopting such strategies, Contrite Tit For Tat survives very well- at least as long as errors are restricted to mistakes in implementation ('the trembling hand'). However, this cooperative strategy cannot persist if mistakes in perception are included as well.

Date: 1997-11
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