Collusion when players take turns

B. Moreno, L. C. Corchón, G. Correa

We present a model of two players who take turns to facilitate collusion. One of the players wins (contract, office), while the other loses by presenting a ludicrous proposal or no proposal at all. Assuming that players use grim trigger strategies, we show that it is possible to sustain agreements as a Subgame Perfect Nash Equilibrium a) for a range of discount factors below one but above zero and b) for two disjoint intervals
of the discount factor.

Keywords: Collusion, Folk Theorem, Taking Turns

Game Theory II
September 5, 2026  4:00 PM
Aula 22

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