Repeated Game - UCLA Econ
Repeated game is a model about such long-term relationships. Obara (UCLA) Repeated Game March 1, 2012 2 / 33. Introduction A list of questions we are interested in: I When can people cooperate in a long-term relationship? I How do people cooperate? ... Repeated Game Ichiro Obara ...
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www.econ.ucla.eduPublic Good Problem Consider the following situation. There is a plan to build a bridge in some village with n residents. Each resident’s bene t from the bridge is v i 2[0;v]. But this information is private. The cost of building a bridge is C > 0, which must be equally shared. Resident i’s payo is v i C=n if a bridge is built and 0 if not.
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www.econ.ucla.eduformulate the consumer problem as a constrained optimization problem: max x2X u(x) s:t:p x w; or equivalently, max x2B(p;w) u(x), which may be easily solved analytically or numerically. Obara (UCLA) Preference and Utility October 2, 2012 12 / 20
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