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Common learning and cooperation in repeated games

Author

Listed:
  • Sugaya, Takuo

    (Graduate School of Business, Stanford University)

  • Yamamoto, Yuichi

    (Hitotsubashi University, Institute of Economic Research)

Abstract

We study repeated games in which players learn the unknown state of the world by observing a sequence of noisy private signals. We find that for generic signal distributions, the folk theorem obtains using ex-post equilibria. In our equilibria, players commonly learn the state, that is, the state becomes asymptotic common knowledge.

Suggested Citation

  • Sugaya, Takuo & Yamamoto, Yuichi, 2020. "Common learning and cooperation in repeated games," Theoretical Economics, Econometric Society, vol. 15(3), July.
    • Handle: RePEc:the:publsh:3820
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mira Frick & Ryota Iijima & Yuhta Ishii, 2021. "Learning Efficiency of Multi-Agent Information Structures," Cowles Foundation Discussion Papers 2299R, Cowles Foundation for Research in Economics, Yale University, revised Dec 2021.
    2. Chan, Jimmy & Zhang, Wenzhang, 2023. "Self-evident events and the value of linking," Journal of Economic Theory, Elsevier, vol. 212(C).
    3. Sugaya, Takuo & Wolitzky, Alexander, 2023. "Bad apples in symmetric repeated games," Theoretical Economics, Econometric Society, vol. 18(4), November.
    4. Ali Yekkehkhany & Timothy Murray & Rakesh Nagi, 2021. "Stochastic Superiority Equilibrium in Game Theory," Decision Analysis, INFORMS, vol. 18(2), pages 153-168, June.
    5. Basu, Pathikrit & Chatterjee, Kalyan & Hoshino, Tetsuya & Tamuz, Omer, 2020. "Repeated coordination with private learning," Journal of Economic Theory, Elsevier, vol. 190(C).
    6. Mira Frick & Ryota Iijima & Yuhta Ishii, 2021. "Learning Efficiency of Multi-Agent Information Structures," Cowles Foundation Discussion Papers 2299R2, Cowles Foundation for Research in Economics, Yale University, revised Jul 2022.

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    More about this item

    Keywords

    Repeated game; private monitoring; incomplete information; ex-post equilibrium; individual learning;
    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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