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Bounding payoffs in repeated games with private monitoring: n-player games

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  • Sugaya, Takuo
  • Wolitzky, Alexander

Abstract

We provide a simple upper bound on the Nash equilibrium payoff set at a fixed discount factor in repeated games with imperfect private monitoring. The bound admits a tractable recursive characterization and can thus be applied “off-the-shelf” to any repeated game. The bound is not tight in general, but it is tight if the stage game is “concave” or if a certain form of observable mixed actions is allowed. We illustrate our results with applications to the repeated prisoners' dilemma and to canonical public goods and oligopoly games.

Suggested Citation

  • Sugaya, Takuo & Wolitzky, Alexander, 2018. "Bounding payoffs in repeated games with private monitoring: n-player games," Journal of Economic Theory, Elsevier, vol. 175(C), pages 58-87.
    • Handle: RePEc:eee:jetheo:v:175:y:2018:i:c:p:58-87
    DOI: 10.1016/j.jet.2018.01.007
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    More about this item

    Keywords

    Repeated games; Private monitoring; Recursive methods; Concave games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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