New Limited-Trust Equilibria Boost Social Utility in Strategic Interactions
Limited-Trust equilibria are a new type of balance in games where players have varying levels of trust. In these games, players interact over time, playing different games with different outcomes. This equilibrium allows players to gain more utility than in traditional competitive games, even though they may seem to give up something. Players can actually come out ahead by not always playing rationally, gaining more than they would in a Nash equilibrium.