To be sure that I understand it—by having p set to 1⁄2, you’re referring to there being at least a 50% chance that there’ll be at least one more round of the game?
If so, I’m somewhat surprised that the odds which make tit-for-tat a winning strategy are such a simple number, which implies that I didn’t understand the underlying aspects of PD strategy as well as I should. I’m going to have to think a bit more about them.
After a night of thought; if I’m reading this right, then your described method of discounting only considers a single future round’s 50% probability. But, if we extend it, to a 25% chance of two future rounds, and 12.5% for three rounds, and so forth, doesn’t that converge on a total of 100% for all future rounds summed up?
All you are saying is that if each round you have a 1⁄2 chance of playing the next round, then the game will last exactly 1 round with probability 1⁄2, exactly 2 rounds with probability 1⁄4, exactly 3 rounds with probability 1⁄8 and so on. Of course this adds up to one, since it is a probability distribution on all possible lengths of the game, and probability distributions always sum to one. The fact that it sums to 1 has nothing to do with game theory.
It’s the more-than-one-round calculation that I’m currently trying to wrap my brain around, rather than the sum of a series of halves adding to one. If there’s a 1⁄3 chance of each round continuing, then that also adds up, with 1⁄9 of the second round’s value, and 1⁄27 of the third’s, and so on—it doesn’t add up to one, but it does add up to more than 1⁄3. Ditto if there’s a 3⁄4 chance of a next round, or a 99% chance.
In the p=1/3 case, there is a 2⁄3 chance of lasting exactly 1 round, 2⁄9 of lasting exactly 2 rounds, 2⁄27 three rounds. This does add up to 1. It will always add up to 1.
We seem to be talking past each other. Yes, the total odds add up to 100%; but the sum of how important each individual round is, differs.
Let’s say that the factor is 2⁄3. Then the first round contributes a total of 2⁄3 its nominal score to the expected value; the second round contributes (2/3)^2=4/9 of its score; and already that adds up to more than 1 - meaning that the effects of future rounds are more likely to outweigh the benefits of a defection-based strategy.
Okay, I understand the issue now, I think. So, summing up the effect of all the future rounds in exactly the way you are describing is something you would do to determine if grim trigger is an equilibrium strategy. (If you defect now, you get punished in ALL future rounds) However, in tit for tat, your punishment for defecting only lasts for 1 round, so you don’t have to add all that up.
To be sure that I understand it—by having p set to 1⁄2, you’re referring to there being at least a 50% chance that there’ll be at least one more round of the game?
If so, I’m somewhat surprised that the odds which make tit-for-tat a winning strategy are such a simple number, which implies that I didn’t understand the underlying aspects of PD strategy as well as I should. I’m going to have to think a bit more about them.
Yes. Every round you stop playing with probability 1⁄2 and continue playing with probability 1⁄2.
The answer 1⁄2 is a function of the PD matrix I chose. If you choose a different matrix, you will get a different number.
After a night of thought; if I’m reading this right, then your described method of discounting only considers a single future round’s 50% probability. But, if we extend it, to a 25% chance of two future rounds, and 12.5% for three rounds, and so forth, doesn’t that converge on a total of 100% for all future rounds summed up?
I think you are confused.
All you are saying is that if each round you have a 1⁄2 chance of playing the next round, then the game will last exactly 1 round with probability 1⁄2, exactly 2 rounds with probability 1⁄4, exactly 3 rounds with probability 1⁄8 and so on. Of course this adds up to one, since it is a probability distribution on all possible lengths of the game, and probability distributions always sum to one. The fact that it sums to 1 has nothing to do with game theory.
It’s the more-than-one-round calculation that I’m currently trying to wrap my brain around, rather than the sum of a series of halves adding to one. If there’s a 1⁄3 chance of each round continuing, then that also adds up, with 1⁄9 of the second round’s value, and 1⁄27 of the third’s, and so on—it doesn’t add up to one, but it does add up to more than 1⁄3. Ditto if there’s a 3⁄4 chance of a next round, or a 99% chance.
In the p=1/3 case, there is a 2⁄3 chance of lasting exactly 1 round, 2⁄9 of lasting exactly 2 rounds, 2⁄27 three rounds. This does add up to 1. It will always add up to 1.
We seem to be talking past each other. Yes, the total odds add up to 100%; but the sum of how important each individual round is, differs.
Let’s say that the factor is 2⁄3. Then the first round contributes a total of 2⁄3 its nominal score to the expected value; the second round contributes (2/3)^2=4/9 of its score; and already that adds up to more than 1 - meaning that the effects of future rounds are more likely to outweigh the benefits of a defection-based strategy.
Okay, I understand the issue now, I think. So, summing up the effect of all the future rounds in exactly the way you are describing is something you would do to determine if grim trigger is an equilibrium strategy. (If you defect now, you get punished in ALL future rounds) However, in tit for tat, your punishment for defecting only lasts for 1 round, so you don’t have to add all that up.