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Doing it now, later, or never

Working paper
Author/s: 
Kutay Cingiz, Jànos Flesch, P. Jean-Jacques Herings
Issue number: 
RM/15/022
Series: 
GSBE
Publisher: 
Maastricht University
Year: 
2015
Working Paper [1]
We study centipede games played by an infinite sequence of players. Following the literature on time-inconsistent preferences, we distinguish two types of decision makers, naive and sophisticated, and the corresponding solution concepts, nave -equilibrium and sophisticated -equilibrium. We show the existence of both naive and sophisticated -equilibria for each positive . Under the assumption that the payoff functions are upper semicontinuous, we furthermore show that there exist both naive and sophisticated 0-equilibria in pure strategies. We also compare the probability to stop of a naive versus a sophisticated decision maker and show that a sophisticated decision maker stops earlier.
Tags: 
Game Theory & Graphs [2]

Source URL:http://www.coalitiontheory.net/content/doing-it-now-later-or-never

Links
[1] http://pub.maastrichtuniversity.nl/b870f657-e0de-4a99-9c11-01d8037931df [2] http://www.coalitiontheory.net/research-areas/game-theory-graphs