Back to Search
Start Over
A game theoretic approach to lowering incentives to violate speed limits in Finland
- Publication Year :
- 2024
-
Abstract
- 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.<br />Comment: 26 pages
- Subjects :
- Economics - General Economics
Subjects
Details
- Database :
- arXiv
- Publication Type :
- Report
- Accession number :
- edsarx.2402.09556
- Document Type :
- Working Paper