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Repeated Games

Nordstrom, Introduction to Game Theory ยง3.1 ยท nordstrommath.com ยท CC BY-SA 4.0

Play the same game many times. If an equilibrium exists, play it every round (pure strategy). If not, mix: assign probabilities to your strategies so your opponent cannot exploit any pattern.

Pure strategy in repeated play

When a game has an equilibrium point, the optimal repeated strategy is simple: play the equilibrium every single round. There is no reason to vary. The equilibrium is already the best response to the opponent's best response.

t=1 t=2 t=3 t=4 t=5 ... R2 R2 R2 R2 R2 P1 C1 C1 C1 C1 C1 P2 pure strategy: same equilibrium choice every round
Scheme

Mixed strategy: when there is no equilibrium

Without an equilibrium, playing the same strategy every round is exploitable. Instead, randomize. A mixed strategy assigns a probability to each pure strategy. Over many rounds, the expected payoff converges to a predictable value, even though individual outcomes are random. This cycle of perceiving outcomes, updating beliefs, and adjusting strategy is the same feedback loop that appears in jkthe natural framework for information processing.

t=1 t=2 t=3 t=4 t=5 ... R1 R2 R1 R1 R2 P1 C2 C1 C1 C2 C1 P2 mixed strategy: randomize to prevent exploitation
Scheme

Rock-Paper-Scissors: the classic mixed game

RPS has no pure equilibrium. Any fixed strategy is exploitable. The optimal mixed strategy is uniform: play each option with probability 1/3. This makes your opponent indifferent, so they cannot gain an edge no matter what they do.

Scheme

Notation reference

Concept Scheme Meaning
Pure strategyalways same row/colPlay the same action every round
Mixed strategy(p, 1-p)Probability distribution over actions
Expected value(mixed-play ...)Average payoff over many rounds
Optimal mix(1/3 1/3 1/3)Makes opponent indifferent
Neighbors

Nordstrom series

Foundations (Wikipedia)

Source: Nordstrom ยง3.1. Licensed CC BY-SA 4.0.