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Collusion through mediated communication in repeated games with imperfect private monitoring

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  • Masaki Aoyagi

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Abstract

This paper studies repeated games with imperfect private monitoring when there exists a third-party mediator who coordinates play by giving non-binding instructions to players on which action to take and by collecting their private information. The paper presents a Nash-threat folk theorem for a communication equilibrium based on such mediation when monitoring is jointly $\epsilon$ -perfect in the sense that every player is almost perfectly monitored collectively by other players. Copyright Springer-Verlag Berlin/Heidelberg 2005

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File URL: http://hdl.handle.net/10.1007/s00199-003-0436-6
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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 25 (2005)
Issue (Month): 2 (02)
Pages: 455-475

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Handle: RePEc:spr:joecth:v:25:y:2005:i:2:p:455-475

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Web page: http://link.springer.de/link/service/journals/00199/index.htm

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Related research

Keywords: Repeated games; Private monitoring; Joint monitoring; Communication; Mediation.;

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Cited by:
  1. MARTIN, Alberto & VERGOTE, Wouter, . "On the role of retaliation in trade agreements," CORE Discussion Papers RP -2037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Tim Reuter, 2013. "Endogenous Cartel Organization and Antitrust Fine Discrimination," Working Paper Series of the Department of Economics, University of Konstanz 2013-09, Department of Economics, University of Konstanz.
  3. Martin, Alberto & Vergote, Wouter, 2004. "Antidumping: Welfare Enhancing Retaliation?," MPRA Paper 5416, University Library of Munich, Germany.

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