Econometrica: Jul 2003, Volume 71, Issue 4

Computing Supergame Equilibria

https://doi.org/10.1111/1468-0262.t01-1-00445
p. 1239-1254

Kenneth L. Judd, Sevin Yeltekin, James Conklin

We present a general method for computing the set of supergame equilibria in infinitely repeated games with perfect monitoring and public randomization. We present a three‐stage algorithm that constructs a convex set containing the set of equilibrium values, constructs another convex set contained in the set of equilibrium values, and produces strategies that support them. We explore the properties of this algorithm by applying it to familiar games.

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