A game theoretic approach to lowering incentives to violate speed limits in Finland

Fuente: arXiv
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Auteurs principaux: Sutela, Mika, Lindström, Nino
Format: Preprint
Publié: 2024
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author Sutela, Mika
Lindström, Nino
author_facet Sutela, Mika
Lindström, Nino
contents We expand on earlier research on the topic by discussing an infinitely repeated game model with a subgame perfect equilibrium strategy profile (SPE) as a solution concept that diminishes incentives to violate speed limits in a carrot and stick fashion. In attempts to construct an SPE strategy profile, the initial state is chosen such that the drivers are playing a mixed strategy whereas the police is not enforcing with certainty. We also postulate a short period version of the repeated game with generalized stage game payoffs. For this game, we construct a multistage strategy profile that is a Nash equilibrium but not an SPE. Some solution candidates are excluded by showing that they do not satisfy a one shot deviation property that is a necessary condition for an SPE profile in a repeated game of perfect information.
format Preprint
id arxiv_https___arxiv_org_abs_2402_09556
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle A game theoretic approach to lowering incentives to violate speed limits in Finland
Sutela, Mika
Lindström, Nino
General Economics
Economics
We expand on earlier research on the topic by discussing an infinitely repeated game model with a subgame perfect equilibrium strategy profile (SPE) as a solution concept that diminishes incentives to violate speed limits in a carrot and stick fashion. In attempts to construct an SPE strategy profile, the initial state is chosen such that the drivers are playing a mixed strategy whereas the police is not enforcing with certainty. We also postulate a short period version of the repeated game with generalized stage game payoffs. For this game, we construct a multistage strategy profile that is a Nash equilibrium but not an SPE. Some solution candidates are excluded by showing that they do not satisfy a one shot deviation property that is a necessary condition for an SPE profile in a repeated game of perfect information.
title A game theoretic approach to lowering incentives to violate speed limits in Finland
topic General Economics
Economics
url https://arxiv.org/abs/2402.09556