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.;
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.:
- 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.
- Cripps,Martin & Scmidt,Klaus & Thomas,Jonathan, 1993.
"Reputation in pertubed repeated games,"
Discussion Paper Serie A
410, University of Bonn, Germany.
- 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.
- Peski, Marcin, 2008. "Repeated games with incomplete information on one side," Theoretical Economics, Econometric Society, vol. 3(1), March.
- Forges, Françoise, 2013. "A folk theorem for Bayesian games with commitment," Games and Economic Behavior, Elsevier, vol. 78(C), pages 64-71.
- Alp Atakan & Mehmet Ekmekci, 2009.
"Reputation in Long-Run Relationships,"
1507, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Forges, Françoise, 2013. "A folk theorem for Bayesian games with commitment," Economics Papers from University Paris Dauphine 123456789/11052, Paris Dauphine University.
- 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.
- Mehmet Ekmekci & Alp Atakan, 2009.
"A two Sided Reputation Result with Long Run Players,"
1510, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- 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.
- 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.
- Sorin, Sylvain, 1999. "Merging, Reputation, and Repeated Games with Incomplete Information," Games and Economic Behavior, Elsevier, vol. 29(1-2), pages 274-308, October.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, January.
- Johannes Hörner & Stefano Lovo, 2009. "Belief-Free Equilibria in Games With Incomplete Information," Econometrica, Econometric Society, vol. 77(2), pages 453-487, 03.
- 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.
- 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.
- 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.
- Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796.
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.