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The Folk Theorem with Private Monitoring Author info | Abstract | Publisher info | Download info | Related research | Statistics Hitoshi Matsushima (Faculty of Economics, University of Tokyo)
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This paper investigates infinitely repeated prisoner-dilemma games, where the discount factor is less than but close to 1. We assume that monitoring is imperfect and private, and players' private signal structures satisfy the conditional independence. We require almost no conditions concerning the accuracy of private signals. We assume that there exist no public signals and no public randomization devices, and players cannot communicate and use only pure strategies. It is shown that the Folk Theorem holds in that every individually rational feasible payoff vector can be approximated by a sequential equilibrium payoff vector. Moreover, the Folk Theorem holds even if each player has no knowledge of her opponent's private signal structure.
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number
CIRJE-F-123.
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Length: 33 pages
Date of creation: Jul 2001Date of revision:
Handle: RePEc:tky:fseres:2001cf123Contact details of provider: Web page: http://www.e.u-tokyo.ac.jp/cirje/index.htm
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References listed on IDEAS 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.: Radner, Roy, 1986.
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[Downloadable!] (restricted)
George J. Mailath & Stephen Morris, .
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Mailath, G.J. & Morris, S., 1998.
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CARESS Working Papres
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[Downloadable!] Radner, Roy, 1985.
"Repeated Principal-Agent Games with Discounting ,"
Econometrica ,
Econometric Society, vol. 53(5), pages 1173-98, September.
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Michihiro Kandori & Hitoshi Matsushima, 1998.
"Private Observation, Communication and Collusion ,"
Econometrica ,
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Jeffrey C. Ely & Juuso Valimaki, 1999.
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Discussion Papers
1264, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Jeffrey Ely, 2000.
"A Robust Folk Theorem for the Prisoners' Dilemma ,"
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[Downloadable!] Ely, Jeffrey C. & Valimaki, Juuso, 2002.
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[Downloadable!] (restricted) Abreu, Dilip & Milgrom, Paul & Pearce, David, 1991.
"Information and Timing in Repeated Partnerships ,"
Econometrica ,
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Other versions:
Abreu, D. & Milgrom, P. & Pearce, D., 1990.
"Information And Timing In Repeated Partnerships ,"
Papers
e-90-14, Stanford - Hoover Institution.
David G. Pearce & Dilip Abreu & Paul R. Milgrom, 1988.
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[Downloadable!] Olivier Compte, 1998.
"Communication in Repeated Games with Imperfect Private Monitoring ,"
Econometrica ,
Econometric Society, vol. 66(3), pages 597-626, May.
Drew Fudenberg & David K. Levine & Eric Maskin, 1994.
"The Folk Theorem with Imperfect Public Information ,"
Levine's Working Paper Archive
394, UCLA Department of Economics.
[Downloadable!]
Other versions:
Drew Fudenberg & David K. Levine & Eric Maskin, 1994.
"The Folk Theorem with Imperfect Public Information ,"
Levine's Working Paper Archive
2058, UCLA Department of Economics.
[Downloadable!] Fudenberg, D. & Levine, D.K. & Maskin, E., 1989.
"The Folk Theorem With Inperfect Public Information ,"
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"The Folk Theorem with Imperfect Public Information ,"
Econometrica ,
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[Downloadable!] (restricted) Michihiro Kandori & Ichiro Obara, 2006.
"Efficiency in Repeated Games Revisited: The Role of Private Strategies ,"
Econometrica ,
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[Downloadable!] (restricted)
Other versions:
Michihiro Kandori & Ichiro Obara, 2003.
"Efficiency in Repeated Games Revisited: The Role of Private Strategies ,"
UCLA Economics Working Papers
826, UCLA Department of Economics.
[Downloadable!] Michihiro Kandori & Ichiro Obara, 2004.
"Efficiency in Repeated Games Revisited: The Role of Private Strategies ,"
Levine's Bibliography
122247000000000055, UCLA Department of Economics.
[Downloadable!] Michihiro Kandori & Ichiro Obara, 2003.
"Efficiency in Repeated Games Revisited: The Role of Private Strategies ,"
CIRJE F-Series
CIRJE-F-255, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!] Hitoshi Matsushima, 2003.
"Repeated Games with Private Monitoring: Two Players ,"
CIRJE F-Series
CIRJE-F-242, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Other versions: Matsushima, Hitoshi, 1989.
"Efficiency in repeated games with imperfect monitoring ,"
Journal of Economic Theory ,
Elsevier, vol. 48(2), pages 428-442, August.
[Downloadable!] (restricted)
Bhaskar, V. & Obara, Ichiro, 2002.
"Belief-Based Equilibria in the Repeated Prisoners' Dilemma with Private Monitoring ,"
Journal of Economic Theory ,
Elsevier, vol. 102(1), pages 40-69, January.
[Downloadable!] (restricted)
Other versions: Matsushima, Hitoshi, 2001.
"Multimarket Contact, Imperfect Monitoring, and Implicit Collusion ,"
Journal of Economic Theory ,
Elsevier, vol. 98(1), pages 158-178, May.
[Downloadable!] (restricted)
Other versions: Hitoshi Matsushima, 2000.
"The Folk Theorem with Private Monitoring and Uniform Sustainability ,"
CIRJE F-Series
CIRJE-F-84, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Sekiguchi, Tadashi, 1997.
"Efficiency in Repeated Prisoner's Dilemma with Private Monitoring ,"
Journal of Economic Theory ,
Elsevier, vol. 76(2), pages 345-361, October.
[Downloadable!] (restricted)
Lehrer, E, 1989.
"Lower Equilibrium Payoffs in Two-Player Repeated Games with Non-observable Actions ,"
International Journal of Game Theory ,
Springer, vol. 18(1), pages 57-89.
Ichiro Obara, 2000.
"Private Strategy and Efficiency: Repeated Partnership Games Revisited ,"
Econometric Society World Congress 2000 Contributed Papers
1449, Econometric Society.
[Downloadable!]
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references Cited by : (explanations , 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.)
Atila Abdulkadiroglu & Kim-Sau Chung, 2002.
"Mechanism design with tacit collusion ,"
Discussion Papers
0102-68, Columbia University, Department of Economics.
[Downloadable!]
Kim-Sau Chung, 2002.
"Optimal Repeated Auction with Tacit Collusion (joint with Atila Abdulkadiroglu) ,"
Theory workshop papers
357966000000000093, UCLA Department of Economics.
[Downloadable!]
Hitoshi Matsushima, 2003.
"Repeated Games with Private Monitoring: Two Players ,"
CIRJE F-Series
CIRJE-F-242, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
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