In
game theory, a trigger strategy is any of a class of strategies employed in a repeated
non-cooperative game
In game theory, a non-cooperative game is a game with competition between individual players, as opposed to cooperative games, and in which alliances can only operate if self-enforcing (e.g. through credible threats). However, 'cooperative' an ...
. A player using a trigger strategy initially cooperates but punishes the opponent if a certain level of defection (i.e., the trigger) is observed.
The level of ''punishment'' and the sensitivity of the trigger vary with different trigger strategies.
Trigger strategies
*
Grim trigger (the punishment continues indefinitely after the other player defects just once)
*
Tit for tat
Tit for tat is an English saying meaning "equivalent retaliation". It developed from "tip for tap", first recorded in 1558.
It is also a highly effective strategy in game theory. An agent using this strategy will first cooperate, then subsequ ...
(the punishment continues as long as the other player defects)
*
Tit for two tats (a more forgiving variant of tit for tat)
References
;Textbooks and general reference texts
* Vives, X. (1999) ''Oligopoly pricing'', MIT Press, Cambridge MA (readable; suitable for advanced undergraduates.)
* Tirole, J. (1988) ''The Theory of Industrial Organization'', MIT Press, Cambridge MA (An organized introduction to industrial organization)
;Classical paper on this subject
* Friedman, J. (1971). A non-cooperative equilibrium for supergames, Review of Economic Studies 38, 1–12. (The first formal proof of the
Folk theorem (game theory)).
Non-cooperative games
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