Discussion Paper of the Institute for Organisational Economics 5/2014

Plans as Conditional Strategies
A Concept Enabling Cooperation in the Prisoners’ Dilemma

Alexander Dilger
May 2014

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Abstract 

In traditional game theory, strategies are equivalent with actions and mixed strategies are the only extension. As a new extension, strategies are interpreted as plans. Although most plans are not very interesting (like doing a certain action), some conditional plans are. For example, they enable cooperation in the Prisoners’ Dilemma.