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A two Sided Reputation Result with Long Run Players

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  • Mehmet Ekmekci
  • Alp Atakan

Abstract

Cripps et al. (2005) conjectured that in an infinitely repeated game with two equally patient players, if there is positive probability that the players could be Stackelberg types, then equilibrium behavior would resemble a war of attrition, i.e., a two-sided reputation result would hold. In this note we show that this conjecture is indeed true for a wide set of stage games for which the one-sided reputation result of Atakan and Ekmekci (2008) holds..

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Bibliographic Info

Paper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1510.

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Date of creation: Aug 2009
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Handle: RePEc:nwu:cmsems:1510

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Keywords: Repeated Games; Reputation; Equal Discount Factor; Long-run Players; War of Attrition. JEL Classification Numbers: C73; D83;

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References

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  1. Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796.
  2. 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.
  3. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
  4. David Kreps & Robert Wilson, 1999. "Reputation and Imperfect Information," Levine's Working Paper Archive 238, David K. Levine.
  5. Dilip Abreu & David Pearce, 2007. "Bargaining, Reputation, and Equilibrium Selection in Repeated Games with Contracts," Econometrica, Econometric Society, vol. 75(3), pages 653-710, 05.
  6. Dilip Abreu & Faruk Gul, 2000. "Bargaining and Reputation," Econometrica, Econometric Society, vol. 68(1), pages 85-118, January.
  7. 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.
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Cited by:
  1. Joseph E. Harrington, Jr. & Wei Zhao, 2012. "Signaling and Tacit Collusion in an Infinitely Repeated Prisoners' Dilemma," Economics Working Paper Archive 587, The Johns Hopkins University,Department of Economics.
  2. Thomas E. Wiseman, 2011. "A Partial Folk Theorem for Games with Private Learning," 2011 Meeting Papers 181, Society for Economic Dynamics.
  3. Francoise Forges & Antoine Salomon, 2014. "Bayesian Repeated Games and Reputations," CESifo Working Paper Series 4700, CESifo Group Munich.
  4. Harrington, Joseph E. & Zhao, Wei, 2012. "Signaling and tacit collusion in an infinitely repeated Prisoners’ Dilemma," Mathematical Social Sciences, Elsevier, vol. 64(3), pages 277-289.
  5. Monte, Daniel, 2013. "Bounded memory and permanent reputations," Journal of Mathematical Economics, Elsevier, vol. 49(5), pages 345-354.
  6. Atakan, Alp Enver & Ekmekci, Mehmet, 2014. "Reputation in Repeated Moral Hazard Games," MPRA Paper 54427, University Library of Munich, Germany.

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