Cooperation in Mixed Equilibrium
Published Online:1 Aug 1976https://doi.org/10.1287/moor.1.3.273
Abstract
Self-penalties of the players in a two-person game are studied as a cooperative tool: by committing himself to a penalty in case he plays a particular strategy, a player may improve upon the equilibrium payoff of both players. A complete characterization of this phenomenon is given for mixed equilibria.
