On the irrelevance of risk attitudes in repeated two-outcome games (Q5931930): Difference between revisions

In a win-loss game each player has two outcomes (``win'' and ``loss''). A two-person win-loss game is strictly competitive if for every pure strategy one player wins and the other losses. The main result of the paper shows that every Nash equilibrium of a two-person, strictly competitive repeated game with finitely many stages is formed by Nash equilibria of a stage games. The only condition required for the utility function of a player is that whenever two sequences of outcomes differ only at a single stage, it assigns a higher value to those where the player wins.