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Repeated Game Deviation Deterrence Gap Tool

Check an explicit infinite-horizon one-shot deviation incentive with constant cooperative and punishment payoffs, normalized by one minus discount factor.

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Description

Check a normalized repeated-game deviation inequality under a constant punishment continuation.

Game-theoretic calculations depend on specified players, actions, payoff direction, probabilities and continuation assumptions. A single incentive term, coalition inequality or candidate best response is only part of a complete equilibrium argument. Supplied preferences and payoffs are model inputs rather than observed behavior or a moral allocation rule.

Check a normalized repeated-game deviation inequality under a constant punishment continuation.

When to use this tool

Use Repeated Game Deviation Deterrence Gap when checking the stated local payoff, strategy, matching or repeated-game condition.

How to use the tool and how it works

  1. Enter cooperationPayoff, deviationPayoff, punishmentPayoff, discountFactor. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read normalizedDeterrenceGap, cooperationDetersDeviation. Inspect cooperationDetersDeviation before interpreting the associated values.

Require discountFactor in [0,1). Gap=cooperationPayoff-(1-factor)*deviationPayoff-factor*punishmentPayoff; cooperationDetersDeviation means gap>=0.1

Input fieldMeaning and unitsAccepted input
cooperationPayoffCooperation PayoffRequired. Finite number.
deviationPayoffDeviation PayoffRequired. Finite number.
punishmentPayoffPunishment PayoffRequired. Finite number.
discountFactorDiscount FactorRequired. Finite number; minimum 0; strictly below 1.
Output fieldInterpretationReturned shape
normalizedDeterrenceGapCooperation-(1-discount)*one-period deviation-discount*constant punishment payoff.Required. Finite number.
cooperationDetersDeviationCooperation Deters DeviationRequired. Boolean.
json
{
  "input": {
    "cooperationPayoff": 3,
    "deviationPayoff": 5,
    "punishmentPayoff": 1,
    "discountFactor": 0.75
  },
  "output": {
    "normalizedDeterrenceGap": 1,
    "cooperationDetersDeviation": true
  }
}

Limitations and assumptions

  • This assumes a one-period deviation followed by the supplied constant punishment continuation; monitoring, credibility and all deviations are not checked.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Use the complete game, feasible strategy space and justified information/continuation assumptions for equilibrium, welfare or actual decision analysis.

References

  1. Calculation and input contract: game-theory/repeated-game-deviation-deterrence-gap — tool.io

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