Apply Repeated Games to Solve "Prisoner's Dilemma" Problem in E-Commerce
Ping Zeng, Lifang Zou · 2010
This paper describes the use of game theory to analyze the "prisoner's dilemma" phenomenon inherent in Electronic Commerce. Analysis yielded the following conclusions: Results of one-time game between both sides is invalid (fraud, fraud).Repeated games can achieve the effective Nash equilibrium (honesty, honesty) between both sides in the process of transaction. Repeated games can maintain long-term cooperative relationships between merchants and consumers, promoting the development of e-commerce. This paper delves deeper into the effects of repeated game theory.