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Learning from private information in noisy repeated games

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  • Fudenberg, Drew
  • Yamamoto, Yuichi

Abstract

We study the perfect type-contingently public ex-post equilibrium (PTXE) of repeated games where players observe imperfect public signals of the actions played, and both the payoff functions and the map from actions to signal distributions depend on an unknown state. The PTXE payoffs when players are patient are determined by the solutions to a family of linear programming problems. Using this characterization, we develop conditions under which play can be as if the players have learned the state. We provide a sufficient condition for the folk theorem, and a characterization of the PTXE payoffs in games with a known monitoring structure.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 146 (2011)
Issue (Month): 5 (September)
Pages: 1733-1769

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Handle: RePEc:eee:jetheo:v:146:y:2011:i:5:p:1733-1769

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Web page: http://www.elsevier.com/locate/inca/622869

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Keywords: Repeated game Public monitoring Incomplete information Perfect public equilibrium Folk theorem Belief-free equilibrium Ex-post equilibrium;

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Cited by:
  1. 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.

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