“That strategic rivalry in a long-term relationship may differ from that of a one-shot game is by now quite a familiar idea. Repeated play allows players to respond to each other’s actions, and so each player must consider the reactions of his opponents in making his decision. The fear of retaliation may thus lead to outcomes that otherwise would not occur. The most dramatic expression of this phenomenon is the celebrated "Folk Theorem." An outcome that Pareto dominates the minimax point is called individually rational. The Folk Theorem asserts that any individually rational outcome can arise as a in infinitely repeated games with sufficiently little discounting.”

—  Eric Maskin

and Eric Maskin. " The folk theorem in repeated games with discounting or with incomplete information http://www.eecs.harvard.edu/~parkes/cs286r/spring06/papers/fudmaskin_folk86.pdf." Econometrica: Journal of the Econometric Society (1986): p. 533; Lead paragraph.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "That strategic rivalry in a long-term relationship may differ from that of a one-shot game is by now quite a familiar i…" by Eric Maskin?
Eric Maskin photo
Eric Maskin 5
American Nobel laureate in economics 1950

Related quotes

Robert Aumann photo

“The players in a game are said to be in strategic equilibrium (or simply equilibrium) when their play is mutually optimal: when the actions and plans of each player are rational in the given strategic environment – i. e., when each knows the actions and plans of the others.”

Robert Aumann (1930) Israeli-American mathematician

Source: War and peace (2005), p. 4

“In a game, the potentialities and evaluations of alternative outcomes must be taken into account, if the reactions of the opponents to each other's moves are to moves are to be understood or described systematically.”

Anatol Rapoport (1911–2007) Russian-born American mathematical psychologist

Source: 1960s, Fights, games, and debates, (1960), p. 10

Robert Aumann photo

“In many real-world situations, cooperation may be easier to sustain in a long-term relationship than in a single encounter. Analyses of short-run games are, thus, often too restrictive. Robert Aumann was the first to conduct a full-fledged formal analysis of so-called infinitely repeated games. His research identified exactly what outcomes can be upheld over time in long-run relations.”

Robert Aumann (1930) Israeli-American mathematician

" Nobel Prize 2005 Press Release http://www.nobelprize.org/nobel_prizes/economics/laureates/2005/press.html" 10 October 2005

Susan Sontag photo

“The notion of art as the dearly purchased outcome of an immense spiritual risk, one whose cost goes up with the entry and participation of each new player in the game”

Susan Sontag book Styles of Radical Will

“The Pornographic Imagination,” p. 45
Styles of Radical Will (1966)

“Game theory is a theory of strategic interaction. That is to say, it is a theory of rational behavior in social situations in which each player has to choose his moves on the basis of what he thinks the other players’ countermoves are likely to be.”

John Harsanyi (1920–2000) hungarian economist

Source: "Games with Incomplete Information," 1997, p. 136

“The outcome of a non-constant-sum game may be dictated by the individual rationality of the respective players without satisfying a criterion of collective rationality.”

Anatol Rapoport (1911–2007) Russian-born American mathematical psychologist

Anatol Rapoport. (1974). Game Theory as a Theory of Conflict Resolution p. 4
1970s and later

“The determination of strategy also requires consideration of what alternative is preferred by the chief executive and perhaps by his immediate associates as well, quite apart from economic considerations. Personal values, aspirations, and ideals do, and in our judgment quite properly should, influence the final choice of purposes. Thus, what the executives of a company want to do must be brought into the strategic decision.
Finally, strategic choice has an ethical aspect—a fact much more dramatically illustrated in some industries than in others. Just as alternatives may be ordered in terms of the degree of risk that they entail, so may they be examined against the standards of responsibility that the strategist elects. Some alternatives may seem to the executive considering them more attractive than others when the public good or service to society is considered. What a company should do thus appears as a fourth element of the fateful decision we have called strategic”

Kenneth R. Andrews (1916–2005) Business scholar

Source: Quote, The Concept of Strategy, 1971, p. 38, cited in: Gastón de los Reyes, Jr. "Introduction (as presented) to The Concept of Strategy 40 Years Later." August 15, 2011, at lgst.wharton.upenn.edu.

Paul Morphy photo

“Paul Morphy was the greatest chess player that ever lived. Every student of the game, who has delved into the stories of the past, realizes that no one ever was so far superior to the players of his time, or ever defeated his opponents with such ease, and no one ever offered knight odds to the men who considered themselves his equal.”

Paul Morphy (1837–1884) American chess player

As quoted in Lasker's Chess Magazine
About

“It must be understood that a fair game may be distinctly unfavorable to the player.”

William Feller (1906–1970) Croatian-American mathematician

Source: An Introduction To Probability Theory And Its Applications (Third Edition), Chapter X, Law Of large Numbers, p. 249.
Context: Much harm was done by the misleading suggestive power of this name. It must be understood that a fair game may be distinctly unfavorable to the player.

“Decision tree - The most picturesque of all the allegedly scientific aids to making decisions. The analyst charts all the possible outcomes of different options, and charts all the latters' outcomes, too. This produces a series of stems and branches (hence the tree). Each of the chains of events is given a probability and a monetary value.”

Robert Heller (1932–2012) British magician

Source: The Pocket Manager, (1987), p. 73

Related topics