Infinitely Repeated Games in the Laboratory: Four Perspectives on Discounting and Random Termination

While infinitely repeated games with payoff discounting are theoretically isomorphic to randomly terminated repeated games without payoff discounting, in practice, they correspond to very different environments. The standard method for implementing infinitely repeated games in the laboratory follows the second interpretation and uses random termination (proposed by Roth and Murnighan [1978]), which links the number of expected repetitions of the...