{ "cells": [ { "cell_type": "markdown", "metadata": {}, "source": [ "#### A Recursive Formulation of Repeated Games\n", "\n", "**Authors**: Chase Coleman with Thomas Sargent\n", "\n", "This notebook describes Julia code that implements an algorithm for computing equilibrium values and associated equilibrium strategy profiles for repeated games with $N$ players and finite actions.\n", "\n", "The code builds on ideas of Abreu, Pearce, Stachetti (1986, 1990).\n", "\n", "It uses a numerical algorithm called the _outer hyperplane approximation algorithm_ invented by Judd, Yeltekin, Conklin (2003).\n", "\n", "We focus on a particularly simple example, namely, a repeated prisoner's dilemma.\n", "\n", "Our friends Timothy Hills and Ben Tengelsen provided useful comments about detailed aspects of the algorithm.\n" ] }, { "cell_type": "code", "execution_count": 1, "metadata": {}, "outputs": [ { "data": { "application/vnd.webio.node+json": { "children": [], "instanceArgs": { "namespace": "html", "tag": "div" }, "nodeType": "DOM", "props": {}, "type": "node" }, "text/html": [ "
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