Repeated Team Games with Absorbing States

Authors: 
Eilon Solan
Abstract: 

Two teams meet every day to play the same matrix game. Every entry in the matrix contains five numbers: a payoff that each player in the first team receives whenever this entry is chosen, a similar payoff for the players of the second team, a probability that once this entry is chosen the game becomes "static", a payoff that each player in the first team receives in each future day if the game becomes "static" by this entry, and a similar payoff for the players of the second team.We prove that every such game has an equilibrium payoff.

Date: 
July, 1997
Published in: 
Number: 
152