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Folk theorems with bounded recall under (almost) perfect monitoring

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  • Mailath, George J.
  • Olszewski, Wojciech

Abstract

We prove the perfect-monitoring folk theorem continues to hold when attention is restricted to strategies with bounded recall and the equilibrium is essentially required to be strict. As a consequence, the perfect monitoring folk theorem is shown to be behaviorally robust under almost-perfect almost-public monitoring. That is, the same specification of behavior continues to be an equilibrium when the monitoring is perturbed from perfect to highly-correlated private.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 71 (2011)
Issue (Month): 1 (January)
Pages: 174-192

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Handle: RePEc:eee:gamebe:v:71:y:2011:i:1:p:174-192

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Web page: http://www.elsevier.com/locate/inca/622836

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Keywords: Repeated games Bounded recall strategies Folk theorem Imperfect monitoring;

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References

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Citations

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Cited by:
  1. Aperjis, Christina & Miao, Yali & Zeckhauser, Richard J., 2011. "Variable Temptations and Black Market Reputations," Working Paper Series 11-020, Harvard University, John F. Kennedy School of Government.
  2. Fudenberg, Drew & Olszewski, Wojciech, 2011. "Repeated games with asynchronous monitoring of an imperfect signal," Games and Economic Behavior, Elsevier, vol. 72(1), pages 86-99, May.
  3. George Mailath & Wojciech Olszewski, 2008. "Folk theorems with Bounded Recall under(Almost) Perfect Monitoring," Discussion Papers 1462, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Barlo, Mehmet & Urgun, Can, 2011. "Stochastic discounting in repeated games: Awaiting the almost inevitable," MPRA Paper 28537, University Library of Munich, Germany.
  5. Olivier Compte & Andrew Postlewaite, 2013. "Belief free equilibria," PIER Working Paper Archive 13-020, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  6. V. Bhaskar & George J. Mailath & Stephen Morris, 2009. "A Foundation for Markov Equilibria in Infinite Horizon Perfect Information Games," PIER Working Paper Archive 09-029, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  7. V. Bhaskar & George J. Mailath & Stephen Morris, 2012. "A Foundation for Markov Equilibria with Finite Social Memory," PIER Working Paper Archive 12-003, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  8. Łukasz Balbus & Kevin Reffett & Łukasz Woźny, 2013. "Markov Stationary Equilibria in Stochastic Supermodular Games with Imperfect Private and Public Information," Dynamic Games and Applications, Springer, vol. 3(2), pages 187-206, June.
  9. Yuichi Yamamoto, 2013. "Individual Learning and Cooperation in Noisy Repeated Games," PIER Working Paper Archive 13-038, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  10. Sugaya, Takuo & Takahashi, Satoru, 2013. "Coordination failure in repeated games with private monitoring," Journal of Economic Theory, Elsevier, vol. 148(5), pages 1891-1928.
  11. Yuichi Yamamoto, 2012. "Individual Learning and Cooperation in Noisy Repeated Games," PIER Working Paper Archive 12-044, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.

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