If the game is strongly directional, i.e. non-terminal states will be reached at most once, there exists a unique RNE payoff.

rel_rne(
  g,
  delta = g$param$delta,
  rho = g$param$rho,
  adjusted.delta = NULL,
  beta1 = g$param$beta1,
  verbose = TRUE,
  ...
)

Arguments

g

The game object

delta

the discount factor

rho

the negotiation probability

adjusted.delta

the adjusted discount factor (1-rho)*delta. Can be specified instead of delta.

beta1

the bargaining weight of player 1. By default equal to 0.5. Can also be initially specified with rel_param.

verbose

if TRUE give more detailed information over the solution process.

Details

For weakly directional games no RNE or multiple RNE payoffs may exist.

You can call rel_capped_rne to solve a capped version of the game that allows state changes only up to some period T. Such a capped version always has a unique RNE payoff.