Finite-state strategy

A history-dependent pure strategy represented by a finite-state machine with an initial automaton state, an action output for each state, and an automaton transition after each observed completed joint action. A grim trigger strategy uses a following state and an absorbing punishment state. Two such deterministic machines jointly form a finite deterministic state system, so their action path is eventually periodic. Its long-run average payoffs are the averages over the eventual cycle; a finite initial prefix has vanishing weight.