Question

Game Theory: Why might cooperation emerge from a repeated game even though the single shot game yields

non-cooperation as the dominant strategy?

Answer 1

Cooperation might provide the higher payoffs to all the playes involved in this gane.

To fetch the higher payoffs by colluding in repeated games is always beneficial to all the players given all the players are patient enough. If we consider Grim Trigger Strategy ot Tit fot tat strategy in which all the players agree to collude as play cooperatively unless no one deviates from colluded startegies this formation of strategies always yield higher payoffs than otherwise NE of non coopearation,

Hence the bottomline to make is if all the players are patient enough in terms of payoff they play in collusion rather NE of Non cooperation.