Characterizing Belief-Free Review-Strategy Equilibrium Payoffs under ConditionalIndependence
AbstractThis paper proposes and studies a tractable subset of Nash equilibria, belief-free review-strategy equilibria, in repeated games with private monitoring. The payoff set of this class of equilibria is characterized in the limit as the discount factor converges to one for games where players observe statistically independent signals. As an application, we develop a simple sufficient condition for the existence of asymptotically efficient equilibria, and establish a folk theorem for N-player prisoner’s dilemma. All these results are robust to a perturbation of the signal distribution, and hence remain true even under almost-independent monitoring.
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 Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 12-005.
Length: 74 pages
Date of creation: 22 Feb 2012
Date of revision:
repeated game; private monitoring; conditional independence; belief-free review-strategy equilibrium; prisoner’s dilemma;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
- NEP-CTA-2012-03-08 (Contract Theory & Applications)
- NEP-GTH-2012-03-08 (Game Theory)
- NEP-MIC-2012-03-08 (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.:
- Obara, Ichiro, 2009.
"Folk theorem with communication,"
Journal of Economic Theory,
Elsevier, vol. 144(1), pages 120-134, January.
- Jeffrey C. Ely & Johannes Hörner & Wojciech Olszewski, 2005.
"Belief-Free Equilibria in Repeated Games,"
Econometric Society, vol. 73(2), pages 377-415, 03.
- Johannes Horner & Wojciech Olszewski, 2005.
"The Folk Theorem for Games with Private, Almost-Perfect Monitoring,"
NajEcon Working Paper Reviews
- Johannes Hörner & Wojciech Olszewski, 2006. "The Folk Theorem for Games with Private Almost-Perfect Monitoring," Econometrica, Econometric Society, vol. 74(6), pages 1499-1544, November.
- Hitoshi Matsushima, 2004.
"Repeated Games with Private Monitoring: Two Players,"
Econometric Society, vol. 72(3), pages 823-852, 05.
- Hitoshi Matsushima, 2003. "Repeated Games with Private Monitoring: Two Players," CIRJE F-Series CIRJE-F-242, CIRJE, Faculty of Economics, University of Tokyo.
- Joseph E. Harrington, Jr. & Andrzej Skrzypacz, 2009.
"Private Monitoring and Communication in Cartels: Explaining Recent Collusive Practices,"
Economics Working Paper Archive
555, The Johns Hopkins University,Department of Economics.
- Joseph E. Harrington & Andrzej Skrzypacz, 2011. "Private Monitoring and Communication in Cartels: Explaining Recent Collusive Practices," American Economic Review, American Economic Association, vol. 101(6), pages 2425-49, October.
- Eiichi Miyagawa & Yasuyuki Miyahara & Tadashi Sekiguchi, 2003.
"Repeated Games with Observation Costs,"
0203-14, Columbia University, Department of Economics.
- Michihiro Kandori & Hitoshi Matsushima, 1997. "Private observation and Communication and Collusion," Levine's Working Paper Archive 1256, David K. Levine.
- Yuichi Yamamoto, 2012. "Individual Learning and Cooperation in Noisy Repeated Games," PIER Working Paper Archive 12-044, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Yuichi Yamamoto, 2013. "Individual Learning and Cooperation in Noisy Repeated Games," PIER Working Paper Archive 13-038, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Chandrasekher, Madhav, 0. "Unraveling in a repeated moral hazard model with multiple agents," Theoretical Economics, Econometric Society.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dolly Guarini).
If references are entirely missing, you can add them using this form.