What is repeated game? Take a simple example, when you buy fruit at a roadside fruit stall and you are worried about being cheated, the fruit seller will often say to you, "don't worry, I won't cheat you. I sell fruit here every day, but I can't run away. If I cheat you, you can come here at any time." At this time, when you hear him say "here every day", you will feel relieved and make a deal with him. The term "everyday" translates into "repeated game". Therefore, repeated game refers to repeated games of the same structure.
Repeated games can reduce cheating and increase mutual trust, because as the fruit seller in the above example said, he is here every day. If you find that you have been cheated, you can retaliate "one for one". The long-term result of retaliation is that rational people will realize that this is not good for everyone, so they will reduce mutual deception, and good faith will emerge.
The profit of convenience stores in the community depends on the "repeated game". Those "repeat customers" - the residents around them are their parents. If convenience stores love to cheat customers, they will lose the long-term profit opportunities. In the same way, when you buy valuables, you must go to a big department store. Generally, they will not escape in order to cheat customers.
On the contrary, stalls, stations and tourist spots, where people are mobile, not only have the worst quality of goods and services, but also fake goods are rampant, because it is not a "repeated game" between businesses and customers. A tourist is unlikely to come again because your food is delicious. This one-time game is "one-time business", which is not profitable. Sell poor quality things to you, you also have to admit bad luck, most of the time not to catch a ride back and business more really it.
Thus, in repeated games, trust is an effective means for participants to maximize their long-term interests.
If the game between business and customers will happen repeatedly, you may as well build mutual trust with customers and let credit win more wealth for you.
Chinese PinYin : Yun Zuo Zhong Fu Bo Yi Jian Li Xiang Hu De Xin Ren
Operate repeated games to build mutual trust
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