•The optimal behavior is
Tit for Tat, which calls for a history of iteration
that the players are aware of (developed by
Rapoport).
•
•1.Be nice. (never be the first to defect)
•2.Be retaliatory (defect if the opponent did last time)
•3.Forgive! (if the opponent stops, you stop)
•4.Be transparent (opponent can tell how you will behave)
•
•This works if the # of
rounds is unknown, eg, there is
an expectation of future interaction, as shown by
Axelrod in 1984.