Gradualism and Irreversibility

S-Tier
Journal: Review of Economic Studies
Year: 2002
Volume: 69
Issue: 2
Pages: 339-356

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper considers a class of two-player dynamic games in which each player controls a one-dimensional action variable, interpreted as a level of cooperation. The dynamics are due to an irreversibility constraint: neither player can ever reduce his cooperation level. Payoffs are decreasing in one's own action, increasing in one's opponent's action. We characterize efficient symmetric equilibrium action paths; actions rise gradually over time and converge, when payoffs are smooth, to a level strictly below the one-shot efficient level, no matter how little discounting takes place. The analysis is extended to incorporate sequential moves and asymmetric equilibria. Copyright 2002, Wiley-Blackwell.

Technical Details

RePEc Handle
repec:oup:restud:v:69:y:2002:i:2:p:339-356
Journal Field
General
Author Count
2
Added to Database
2026-01-25