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Reputation with Observed Actions

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Author Info

  • Celentani, Marco

Abstract

A single long-run player plays a fixed-stage game (simultaneous or sequential move) against an infinite sequence of short-run opponents that play only once but can observe all past realized actions. Assuming that the probability distributions over types of long- and short-run players have full support, we show that the long-run player can always establish a reputation for the Stackelberg strategy and is therefore guaranteed almost his Stackelberg payoff in all Nash equilibria of the repeated game.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 7 (1996)
Issue (Month): 3 (April)
Pages: 407-19

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Handle: RePEc:spr:joecth:v:7:y:1996:i:3:p:407-19

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Cited by:
  1. Fudenberg, Drew & Levine, David & Pesendorfer, Wolfgang, 1998. "When Are Nonanonymous Players Negligible?," Journal of Economic Theory, Elsevier, vol. 79(1), pages 46-71, March.
  2. Celentani, Marco, et al, 1996. "Maintaining a Reputation against a Long-Lived Opponent," Econometrica, Econometric Society, vol. 64(3), pages 691-704, May.
  3. Sorin, Sylvain, 1999. "Merging, Reputation, and Repeated Games with Incomplete Information," Games and Economic Behavior, Elsevier, vol. 29(1-2), pages 274-308, October.

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