CeDEx Brown Bag Seminar - Tong Fang

Title: An equilibrium explanation for behaviour in the finitely repeated prisoners' dilemma

Abstract: We study a finitely repeated Prisoner’s Dilemma with incomplete information in a signalling framework, where players possess social preferences over inequality. The objective is to characterise the set of Perfect Bayesian Equilibria (PBE) and to refine this set using Markov Perfect Equilibrium and renegotiation-proofness. The model is used to explain widely observed behavioural regularities, such as the end-game effect, and to derive theoretical predictions that we compare with experimental data.