Tit-for-tat

Game theory

Tit-for-tat has been very successfully used as a strategy for the iterated prisoner's dilemma. The strategy was first introduced by Anatol Rapoport in Robert Axelrod's two tournaments, held around 1980. Notably, it was (on both occasions) both the simplest strategy and the most successful in direct competition. Few have extended the game theoretical approach to other applications such as finance. In that context the tit for tat strategy was shown to be associated to the trend following strategy.