Finitely Repeated Games
As explained earlier, finite games can be divided into two broad classes. In the first class of finitely repeated games where the time period is fixed and known, it is optimal to play the Nash strategy in the last period. When the Nash Equilibrium payoff is equal to the minmax payoff, then the player has no reason to stick to a socially optimum strategy and is free to play a selfish strategy throughout, since the punishment cannot affect him (being equal to the minmax payoff). This deviation to a selfish Nash Equilibrium strategy is explained by the Chainstore paradox. The second class of finitely repeated games are usually thought of as infinitely repeated games.
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