Compensations in weak renegotiation proof equilibria

Abstract

In an infinitely repeated game, after a player deviated from promised plays, if he can compensate for his opponent for a number of periods, then after the compensations, their interaction can return to the original state before the deviation. If we name such compensation as agreement, then such agreement can be modeled by weak renegotiation proof equilibrium. In this research, we discuss such equilibrium and introduce main approaches and possible applications regarding it.