Subgame perfect reaction function equilibria in discounted duopoly supergames are trivial
type: Item
instance of: scholarly article
title: Subgame perfect reaction function equilibria in discounted duopoly supergames are trivial
zbMATH Open document ID: 0604.90144
DOI: 10.1016/0022-0531(86)90026-8
author: William G. Stanford
published in: Journal of Economic Theory
publication date: 1986-01-01T00:00:00Z
review text: This paper is concerned with infinitely repeated duopoly games with discounting. A question which has been open since \textit{J. W. Friedman's} reaction function article [Rev. Econ. Stud. 35, 257-272 (1968; Zbl 0224.90016)] is settled for a general class of games. The question is whether nontrivial reaction function equilibria can be subgame perfect. This question is answered in the negative. Such equilibria must be trivial in the sense of prescribing the stage game noncooperative equilibrium actions in every period, independent of prior history.
Mathematics Subject Classification ID: 91A20
Mathematics Subject Classification ID: 91B24
Mathematics Subject Classification ID: 91A40
zbMATH DE Number: 3976824
zbMATH Keywords: infinitely repeated duopoly games
zbMATH Keywords: discounting
zbMATH Keywords: nontrivial reaction function equilibria
zbMATH Keywords: subgame perfect
MaRDI profile type: Publication
full work available at URL: 0022-0531(86)90026-8
OpenAlex ID: W1969747271
cites work: Reaction Functions and the Theory of Duopoly
cites work: A Non-cooperative Equilibrium for Supergames
cites work: Q4166473
cites work: Equilibrium in supergames with the overtaking criterion
cites work: Reexamination of the perfectness concept for equilibrium points in extensive games
cites work: Q3843226
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description: scientific article; zbMATH DE number 3976824