Bayesian repeated games and reputation
AbstractThe folk theorem characterizes the (subgame perfect) Nash equilibrium payoffs of an undiscounted or discounted infinitely repeated game - with fully informed, patient players - as the feasible individually rational payoffs of the one-shot game. To which extent does the result still hold when every player privately knows his own payoffs ? Under appropriate assumptions (private values and uniform punishments), the Nash equilibria of the Bayesian infinitely repeated game without discounting are payoff equivalent to tractable, completely revealing, equilibria and can be achieved as interim cooperative solutions of the initial Bayesian game. This characterization does not apply to discounted games with sufficiently patient players. In a class of public good games, the set of Nash equilibrium payoffs of the undiscounted game can be empty, while limit (perfect Bayesian) Nash equilibrium payoffs of the discounted game, as players become infinitely patient, do exist. These equilibria share some features with the ones of multi-sided reputation models.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Working Papers with number hal-00803919.
Date of creation: 12 Feb 2014
Date of revision:
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00803919
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Bayesian game; incentive compatibility; individual rationality; infinitely repeated game; private values; public good; reputation.;
Other versions of this item:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-06 (All new papers)
- NEP-CTA-2013-04-06 (Contract Theory & Applications)
- NEP-HPE-2013-04-06 (History & Philosophy of Economics)
- NEP-MIC-2013-04-06 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Johannes Hörner & Stefano Lovo, 2009. "Belief-Free Equilibria in Games With Incomplete Information," Econometrica, Econometric Society, vol. 77(2), pages 453-487, 03.
- Alp E. Atakan & Mehmet Ekmekci, 2012.
"Reputation in Long-Run Relationships,"
Review of Economic Studies,
Oxford University Press, vol. 79(2), pages 451-480.
- Cripps, Martin W. & Dekel, Eddie & Pesendorfer, Wolfgang, 2005. "Reputation with equal discounting in repeated games with strictly conflicting interests," Journal of Economic Theory, Elsevier, vol. 121(2), pages 259-272, April.
- Robert J. Aumann, 1995. "Repeated Games with Incomplete Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011476, December.
- Shalev Jonathan, 1994. "Nonzero-Sum Two-Person Repeated Games with Incomplete Information and Known-Own Payoffs," Games and Economic Behavior, Elsevier, vol. 7(2), pages 246-259, September.
- Cripps, Martin W & Thomas, Jonathan P, 1995. "Reputation and Commitment in Two-Person Repeated Games without Discounting," Econometrica, Econometric Society, vol. 63(6), pages 1401-19, November.
- Cripps,Martin & Scmidt,Klaus & Thomas,Jonathan, 1993.
"Reputation in pertubed repeated games,"
Discussion Paper Serie A
410, University of Bonn, Germany.
- Peski, Marcin, 0. "Repeated games with incomplete information and discounting," Theoretical Economics, Econometric Society.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
- Kreps, David M. & Wilson, Robert, 1982.
"Reputation and imperfect information,"
Journal of Economic Theory,
Elsevier, vol. 27(2), pages 253-279, August.
- Sorin, Sylvain, 1999. "Merging, Reputation, and Repeated Games with Incomplete Information," Games and Economic Behavior, Elsevier, vol. 29(1-2), pages 274-308, October.
- Cripps, Martin W. & Thomas, Jonathan P., 1997. "Reputation and Perfection in Repeated Common Interest Games," Games and Economic Behavior, Elsevier, vol. 18(2), pages 141-158, February.
- Forges, Françoise, 2013.
"A folk theorem for Bayesian games with commitment,"
Games and Economic Behavior,
Elsevier, vol. 78(C), pages 64-71.
- Wiseman, Thomas, 2012.
"A partial folk theorem for games with private learning,"
Econometric Society, vol. 7(2), May.
- Thomas E. Wiseman, 2011. "A Partial Folk Theorem for Games with Private Learning," 2011 Meeting Papers 181, Society for Economic Dynamics.
- Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796, Octomber.
- Hörner, Johannes & Lovo, Stefano & Tomala, Tristan, 2011. "Belief-free equilibria in games with incomplete information: Characterization and existence," Journal of Economic Theory, Elsevier, vol. 146(5), pages 1770-1795, September.
- Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May.
- Peski, Marcin, 2008. "Repeated games with incomplete information on one side," Theoretical Economics, Econometric Society, vol. 3(1), March.
- Atakan, Alp E. & Ekmekci, Mehmet, 2013.
"A two-sided reputation result with long-run players,"
Journal of Economic Theory,
Elsevier, vol. 148(1), pages 376-392.
- Mehmet Ekmekci & Alp Atakan, 2009. "A two Sided Reputation Result with Long Run Players," Discussion Papers 1510, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- HART, Sergiu, . "Nonzerosum two-person repeated games with incomplete information," CORE Discussion Papers RP -636, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Kalai, Adam Tauman & Kalai, Ehud & Lehrer, Ehud & Samet, Dov, 2010. "A commitment folk theorem," Games and Economic Behavior, Elsevier, vol. 69(1), pages 127-137, May.
- Palfrey, Thomas R & Rosenthal, Howard, 1994. "Repeated Play, Cooperation and Coordination: An Experimental Study," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 545-65, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.