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Public randomization in the repeated prisoner's dilemma game with local interaction

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  • Cho, Myeonghwan

Abstract

We consider a situation in which each agent observes only their neighbor's actions and locally interacts with them by playing prisoner's dilemma games. Introducing a public randomization, we construct an equilibrium which sustains cooperation and in which cooperation eventually resumes after any history.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 112 (2011)
Issue (Month): 3 (September)
Pages: 280-282

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Handle: RePEc:eee:ecolet:v:112:y:2011:i:3:p:280-282

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Repeated prisoner's dilemma game Local interaction Public randomization Network;

References

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  1. Michi Kandori, 2010. "Social Norms and Community Enforcement," Levine's Working Paper Archive 630, David K. Levine.
  2. George Mailath & Stephen Morris, . ""Repeated Games with Almost-Public Monitoring''," CARESS Working Papres 99-09, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  3. Fudenberg, Drew & Levine, David I & Maskin, Eric, 1994. "The Folk Theorem with Imperfect Public Information," Econometrica, Econometric Society, vol. 62(5), pages 997-1039, September.
  4. Bhaskar, V, 1998. "Informational Constraints and the Overlapping Generations Model: Folk and Anti-Folk Theorems," Review of Economic Studies, Wiley Blackwell, vol. 65(1), pages 135-49, January.
  5. Ellison, Glenn, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 567-88, July.
  6. Kandori, Michihiro, 1992. "Repeated Games Played by Overlapping Generations of Players," Review of Economic Studies, Wiley Blackwell, vol. 59(1), pages 81-92, January.
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Cited by:
  1. Nava, Francesco & Piccione, Michele, 2014. "Efficiency in repeated games with local interaction and uncertain local monitoring," Theoretical Economics, Econometric Society, vol. 9(1), January.

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