scholarly journals Fine cartels

2021 ◽  
Author(s):  
David K. Levine
Keyword(s):  
Game Theory ◽  
Simple Model ◽  
Repeated Game ◽  
Price Wars ◽  
Noisy Signals ◽  
Repeated Game Theory

AbstractThis paper studies a simple model of a repeated cartel that can punish using both voluntary fines and inefficient prices wars. The idea is to use the fines in response to noisy signals of bad behavior and back it up with threats of price wars in response to the easily observed failure to pay the voluntary fines. The model is shown to deliver the insights of modern repeated game theory in an empirically accurate and tractable form.

Kitcher on Natural Morality

2012 ◽  
Vol 34 (1) ◽  
Author(s):  
Ken Binmore
Keyword(s):  
Game Theory ◽  
Equilibrium Selection ◽  
Repeated Game ◽  
Folk Theorem ◽  
Selection Problem ◽  
Social Contracts ◽  
Evolution Of Morality ◽  
Fairness Norms ◽  
Repeated Game Theory ◽  
Ethical Project

AbstractThis commentary on Philip Kitcher’s Ethical Project compares his theory of the evolution of morality with my less ambitious theory of the evolution of fairness norms that seeks to flesh out John Mackie’s insight that one should use game theory as a framework within which to assess anthropological data. It lays particular stress on the importance of the folk theorem of repeated game theory, which provides a template for the set of stable social contracts that were available to ancestral hunter-gatherer communities. It continues by drawing attention to the relevance of Harsanyi’s theory of empathetic preferences in structuring the fairness criteria that evolved as one response to the equilibrium selection problem that the folk theorem demonstrates is endemic in our species.

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