Enforceability in Infinitely Repeated Games
The ability to identify if a payoff is enforceable in a Nash equilibrium of an infinitely repeated game.
Question template
Consider a market where two symmetric firms can either set low prices to undercut the competitor or set high prices for higher margins. The annual payoffs for the two strategies are such that if both set low prices, each earns both x; if both set high prices, each earns both y; if one sets a low price while the other sets a high price, the low price setter earns x payoff and the high price setter earns y payoff. Given the firms are farsighted with a discount factor of discount factor, which of the following outcomes is enforceable in a Nash equilibrium of an infinitely repeated game?
Use it
from datasets import load_dataset
ds = load_dataset("narunraman/steer", "enforceability")curl "https://steer-benchmark.cs.ubc.ca/api/sample?element_name=enforceability&n=5&seed=42"
See the Reference for the parameters.