This paper proposes a characterization of optimal strategies for playing certain repeated coordination games whose players have identical preferences. Players' optimal coordination strategies reflect their uncertainty about how their partners will respond to multiple-equilibrium problems; this uncertainty constraints the statistical relationships between their strategy choices players can bring about. We show that optimality is nevertheless consistent with subgame-perfect equilibrium. Examples are analyzed in which players use precedents as focal points to achieve and maintain coordination, and in which they play dominated strategies with positive probability in early stages in the hope of generating a useful precedent.
MLA
Haller, Hans, and Vincent P. Crawford. “Learning How to Cooperate: Optimal Play in Repeated Coordination Games.” Econometrica, vol. 58, .no 3, Econometric Society, 1990, pp. 571-595, https://www.jstor.org/stable/2938191
Chicago
Haller, Hans, and Vincent P. Crawford. “Learning How to Cooperate: Optimal Play in Repeated Coordination Games.” Econometrica, 58, .no 3, (Econometric Society: 1990), 571-595. https://www.jstor.org/stable/2938191
APA
Haller, H., & Crawford, V. P. (1990). Learning How to Cooperate: Optimal Play in Repeated Coordination Games. Econometrica, 58(3), 571-595. https://www.jstor.org/stable/2938191
We are deeply saddened by the passing of Kate Ho, the John L. Weinberg Professor of Economics and Business Policy at Princeton University and a Fellow of the Econometric Society. Kate was a brilliant IO economist and scholar whose impact on the profession will resonate for many years to come.
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