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A Robust Folk Theorem for the Prisoners' Dilemma

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  • Jeffrey Ely

    (Northwestern University)

Abstract

We prove the folk theorem for the Prisoner's dilemma using strategies that are robust to private monitoring. From this follows a limit folk theorem : when players are patient and monitoring is sufficiently accurate, (but private and possibly independent) any feasible individually rational payoff can be obtained in sequential equilibrium. The strategies used can be implemented by finite (randomizing) automata.

Suggested Citation

  • Jeffrey Ely, 2000. "A Robust Folk Theorem for the Prisoners' Dilemma," Econometric Society World Congress 2000 Contributed Papers 0210, Econometric Society.
    • Handle: RePEc:ecm:wc2000:0210
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    References listed on IDEAS

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