Games and Economic Behavior
Опубликовано на портале: 12-07-2005Reinhard Selten, Myrna Wooders Games and Economic Behavior. 2001. Vol. 34. No. 1. P. 138-152.
We introduce a model of a cyclic game. Designed to take advantage of the recurring nature of certain economic and social situations, a cyclic game differs from an extensive form game in that a cyclic game does not necessarily have an end. The same situations, although with different players, may be repeated infinitely often. We provide an example showing that, even though a cyclic game has, in a sense, perfect information, it may not have an equilibrium in pure strategies. We demonstrate existence of equilibrium and illustrate the application of our model to an oligopolistic industry.