New Equilibria in Games: Punishment-Free Strategies for Efficient Outcomes.
The article introduces new ways to analyze repeated games where players have complete information. These new methods, called value oriented equilibria, focus on how players respond to each other's actions based on the value of those actions to themselves. One type of equilibrium, value sufficient equilibria, ensures that players only consider the value of actions to themselves when making strategic decisions. Another type, value monotonic equilibria, prevents players from punishing each other for actions that benefit one player. By using these equilibria, the researchers were able to narrow down the possible outcomes of the game, excluding those that are inefficient and can be improved by one player acting alone.