rel_after_cap_payoffs.Rd
Specify the SPE payoff set(s) of the truncated game(s) after a cap in period T. While we could specify a complete repeated game that is played after the cap, it also suffices to specify just an SPE payoff set of the truncated game of the after-cap state.
rel_after_cap_payoffs( g, x = NA, U, v1 = NA, v2 = NA, v1.rep = NA, v2.rep = NA, x.T = NA )
g | a relational contracting game created with rel_game |
---|---|
x | The state(s) for which this after-cap payoff set is applied. If NA (default) and also x.T is NA, it applies to all states. |
U | The highest joint payoff in the truncated repeated game starting from period T. |
v1 | The lowest SPE payoff of player 1 in the truncated game. These are average discounted payoffs using delta as discount factor. |
v2 | Like v1, but for player 2. |
v1.rep | Alternative to v1. Player 1 lowest SPE payoff in the repeated game with adjusted discount factor delta*(1-rho). Will be automatically converted into v1_trunc based on rho, delta, and bargaining weight. Are often easier to specify. |
v2.rep | Like v1.rep, but for player 2. |
x.T | Instead of specifiying the argument x, we can specify as x.T a name of the after-cap state. This can be refereed to as the argument x.T in rel_state and rel_states |
Returns the updated game