This should be the lede. Most real-world interactions lose a lot of options, and a lot of potential value, by being simplified to a (n iterated) PD, SH, or BotS.
In reality, there’s almost always un-modeled transfer and payouts—just being able to say “good job, thanks!” after a result is FREE UTILITY! Also, non-pathological humans have terms for the other player(s) in their utility function. Most importantly, there are far too many future games in the iteration set of a human lifetime for anyone to model, so reputation and self-image effects very often will dominate the modeled payouts.
This should be the lede. Most real-world interactions lose a lot of options, and a lot of potential value, by being simplified to a (n iterated) PD, SH, or BotS.
In reality, there’s almost always un-modeled transfer and payouts—just being able to say “good job, thanks!” after a result is FREE UTILITY! Also, non-pathological humans have terms for the other player(s) in their utility function. Most importantly, there are far too many future games in the iteration set of a human lifetime for anyone to model, so reputation and self-image effects very often will dominate the modeled payouts.