Iterated Games¶
Summary¶
Games (interactions) that are played repeatedly between the same players, where past behavior influences future decisions — unlike one-off games where the rational choice is always to defect.
Key Insight¶
"What makes it possible for cooperation to emerge is the fact that the players might meet again." — Robert Axelrod
Why Repetition Changes Everything¶
| One-Off Game | Iterated Game | |
|---|---|---|
| Rational strategy | Always defect | Cooperate, retaliate, forgive |
| Reputation | Irrelevant | Everything |
| Trust | Impossible | Can emerge |
| Outcome | Mutual defection | Mutual cooperation possible |
Winning Strategy¶
Tit For Tat — start with cooperation, then copy opponent's last move — won Axelrod's tournaments twice.