The Folk Theorem with Private Monitoring
AbstractThis 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.
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 CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-123.
Length: 33 pages
Date of creation: Jul 2001
Date of revision:
Contact details of provider:
Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-07-30 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office).
If references are entirely missing, you can add them using this form.