Some Asymptotic Results in Discounted Repeated Games of One-Sided Incomplete Information
Abstract
The paper analyzes the Nash equilibria of two-person discounted repeated games with one-sided incomplete information and known own payo®s. If the informed player is arbitrarily patient relative to the uninformed player, then the characterization for the informed player's payoffs is essentially the same as that in the undiscounted case. This implies that even small amounts of incomplete information can lead to a discontinuous change in the equilibrium payoff set. For the case of equal discount factors, however, and under an assumption that strictly individually rational payoffs exist, a result akin to the Folk Theorem holds when a complete information game is perturbed by a small amount of incomplete information.Download Info
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Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 76.Length: 49
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:edn:esedps:76
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Related research
Keywords: Reputation; Folk Theorem; repeated games; incomplete information.;Other versions of this item:
- Jonathan P. Thomas & Martin Cripps, 2000. "Some Asymptotic Results in Discounted Repeated Games of One-Sided Incomplete Information," Game Theory and Information 0004003, EconWPA.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-03-22 (All new papers)
- NEP-DEV-2004-03-22 (Development)
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Nicolas Jacquemet & Frédéric Koessler, 2011.
"Using or Hiding Private Information ? An Experimental Study of Zero-Sum Repeated Games with Incomplete Information,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
halshs-00565157, HAL.
- Jacquemet, Nicolas & Koessler, Frédéric, 2013. "Using or hiding private information? An experimental study of zero-sum repeated games with incomplete information," Games and Economic Behavior, Elsevier, vol. 78(C), pages 103-120.
- Nicolas Jacquemet & Frédéric Koessler, 2011. "Using or Hiding Private Information ? An experimental Study of Zero-Sum Repeated Games with Incomplete Information," Documents de travail du Centre d'Economie de la Sorbonne 11002, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Nicolas Jacquemet & Frédéric Koessler, 2013. "Using or Hiding Private Information? An Experimental Study of Zero-Sum Repeated Games with Incomplete Information," Post-Print halshs-00773412, HAL.
- Lovo, Stefano & Tomala, Tristan & Hörner, Johannes, 2009. "Belief-free equilibria in games with incomplete information: characterization and existence," Les Cahiers de Recherche 921, HEC Paris.
- Stefano, LOVO, 2007. "Belief-free equilibria in games with incomplete information," Les Cahiers de Recherche 884, HEC Paris.
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