Time Horizon of Games Finite Infinite (unspecified) Original Equilibrium of the Game. In PD: D Overvaluation of Cooperation. In PD: TFT Under Finite Time Horizon Selten’s Theorem: The equilibrium of the basic game will be the SPE of the whole finitely repeated game also. In prisoner’s dilemma this equilibrium is D. Under Infinite Time Horizon Folk theorem: If a one-shot game is infinitely repeated, then essentially all distributions of individual rational payoffs can be equilibria of the whole infinitely repeated game. The best equilibrium candidate is TFT.
