- Trigger strategy
A trigger strategy is a class of strategies employed in a repeated non-cooperative game. A player utilizing a trigger strategy initially cooperates but punishes the opponent if a certain level of defection (i.e., the trigger) is observed. The level of punishment and the sensitivity of the trigger vary with different trigger strategies.
Trigger strategies
*
Tit for Tat (the punishment continues as long as the other player defects)
* Tit for Two Tats (a more forgiving variant of tit for tat)
*Grim trigger (the punishment continues indefinitely after the other player defects just once);Textbooks and general reference texts
* Vives, X. (1999) "Oligopoly pricing", MIT Press, Cambridge MA (readable; suitable for advanced undergraduates.)
* Tirole, J. (1988) "The Theory of Industrial Organization", MIT Press, Cambridge MA (An organized introduction to industrial organization);Classical paper on this subject
* Friedman, J. (1971). A non-cooperative equilibrium for supergames, Review of Economic Studies 38, 1-12. (The first formal proof of the
Folk theorem (game theory) ).
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