Games That End in a Bang or a Whimper

Abstract

Using truels, or three-person duels, as an example, we show that how players perceive a multiple-round game will end can make a big difference in whether it ends non-cooperatively (producing a "bang") or just peters out (producing a "whimper"): 1. If the players view the number of rounds as bounded-reasonable, because the game must end in a finite number of rounds-they will shoot from the start. 2. If the players view the number of rounds as unbounded-reasonable, because the horizon of the game is infinite-then a cooperative equilibrium, involving no shooting, can also occur. Real- life examples are given of players with bounded and unbounded outlooks in truel- like situations. Unbounded outlooks encourage cooperative play, foster hope, and lead to more auspicious outcomes. These outcomes are facilitated by institutions that put no bounds on play-including reprisals-thereby allowing for a day of reckoning for those who violate established norms. Eschatological implications of the analysis, especially for thinking about the future and how it might end, are also discussed.TRUELS; BACKWARD INDUCTION; INFINITE-HORIZON GAMES; ESCHATOLOGY