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Folk Theorem with One-sided Information

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  • Harrison Cheng

    (University of Southern California)

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    Abstract

    A game with one-sided moral hazard is represented by a two-stage games. We give necessary and sufficient conditions for the folk theorem to hold. Equilibrium payoffs are generated by payoffs from pure strategy profiles which do not admit profitable nondetectable deviations. The enforceable maximum payoff is shown to be a better notion for the individually rational payoff. (Copyright: Elsevier)

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    File URL: http://dx.doi.org/10.1006/redy.1999.0079
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    Bibliographic Info

    Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

    Volume (Year): 3 (2000)
    Issue (Month): 2 (April)
    Pages: 338-363

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    Handle: RePEc:red:issued:v:3:y:2000:i:2:p:338-363

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    6. Fudenberg, D. & Levine, D.K. & Maskin, E., 1989. "The Folk Theorem With Inperfect Public Information," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 523, Massachusetts Institute of Technology (MIT), Department of Economics.
    7. Mertens, J.-F., 1986. "Repeated games," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1986024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    19. Wen, Quan, 1994. "The "Folk Theorem" for Repeated Games with Complete Information," Econometrica, Econometric Society, Econometric Society, vol. 62(4), pages 949-54, July.
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    Cited by:
    1. David K. Levine & Aldo Rustichini, 2000. "Introduction," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(2), pages 213-215, April.
    2. David K Levine & Aldo Rustichini, 2000. "Introduction: The Dynamic Games Special Issue," Levine's Working Paper Archive 2127, David K. Levine.

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