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The value of a draw

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We model a match as a recursive zero-sum game with three possible outcomes: Player 1 wins, player 2 wins, or there is a draw. We focus on matches whose point… Click to show full abstract

We model a match as a recursive zero-sum game with three possible outcomes: Player 1 wins, player 2 wins, or there is a draw. We focus on matches whose point games also have three possible outcomes: Player 1 scores the point, player 2 scores the point, or the point is drawn in which case the point game is repeated. We show that a value of a draw can be attached to each state so that an easily computed stationary equilibrium exists in which players’ strategies can be described as minimax behavior in the point games induced by these values.

Keywords: point; value draw; player

Journal Title: Economic Theory
Year Published: 2018

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