IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-07c70038.html
   My bibliography  Save this article

A Simple Exposition of Belief-Free Equilibria in Repeated Games

Author

Listed:
  • Wojciech Olszewski

    (Northwestern University)

Abstract

Recently, there has been made a substantial progress in the analysis of repeated games with private monitoring. This progress began with introducing a new class of sequential equilibrium strategies, called belief-free equilibria, that can be analyzed using recursive techniques. The purpose of this paper is to explain the general method of constructing belief-free equilibria, and the limit (or bound) on the set of payoff vectors that can be achieved in these strategies in a way that should be easily accessible, even for those who do not pretend to be experts in repeated games.

Suggested Citation

  • Wojciech Olszewski, 2007. "A Simple Exposition of Belief-Free Equilibria in Repeated Games," Economics Bulletin, AccessEcon, vol. 3(58), pages 1-16.
    • Handle: RePEc:ebl:ecbull:eb-07c70038
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2007/Volume3/EB-07C70038A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Michihiro Kandori & Ichiro Obara, 2006. "Efficiency in Repeated Games Revisited: The Role of Private Strategies," Econometrica, Econometric Society, vol. 74(2), pages 499-519, March.
    3. Hitoshi Matsushima, 2004. "Repeated Games with Private Monitoring: Two Players," Econometrica, Econometric Society, vol. 72(3), pages 823-852, May.
    4. Drew Fudenberg & David Levine & Eric Maskin, 2008. "The Folk Theorem With Imperfect Public Information," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 12, pages 231-273, World Scientific Publishing Co. Pte. Ltd..
    5. Takahashi, Satoru, 2010. "Community enforcement when players observe partners' past play," Journal of Economic Theory, Elsevier, vol. 145(1), pages 42-62, January.
    6. Kandori, Michihiro, 2002. "Introduction to Repeated Games with Private Monitoring," Journal of Economic Theory, Elsevier, vol. 102(1), pages 1-15, January.
    7. Mailath, George J. & Samuelson, Larry, 2006. "Repeated Games and Reputations: Long-Run Relationships," OUP Catalogue, Oxford University Press, number 9780195300796, Decembrie.
    8. Piccione, Michele, 2002. "The Repeated Prisoner's Dilemma with Imperfect Private Monitoring," Journal of Economic Theory, Elsevier, vol. 102(1), pages 70-83, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Araujo, Luis & Camargo, Braz, 2015. "Limited monitoring and the essentiality of money," Journal of Mathematical Economics, Elsevier, vol. 58(C), pages 32-37.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Michihiro Kandori, 2011. "Weakly Belief‐Free Equilibria in Repeated Games With Private Monitoring," Econometrica, Econometric Society, vol. 79(3), pages 877-892, May.
    4. repec:ebl:ecbull:v:3:y:2007:i:58:p:1-16 is not listed on IDEAS
    5. Yamamoto, Yuichi, 2009. "A limit characterization of belief-free equilibrium payoffs in repeated games," Journal of Economic Theory, Elsevier, vol. 144(2), pages 802-824, March.
    6. Heller, Yuval, 2015. "Instability of Equilibria with Imperfect Private Monitoring," MPRA Paper 64468, University Library of Munich, Germany.
    7. repec:pra:mprapa:64485 is not listed on IDEAS
    8. Chen, Bo, 2010. "A belief-based approach to the repeated prisoners' dilemma with asymmetric private monitoring," Journal of Economic Theory, Elsevier, vol. 145(1), pages 402-420, January.
    9. , H. & ,, 2016. "Approximate efficiency in repeated games with side-payments and correlated signals," Theoretical Economics, Econometric Society, vol. 11(1), January.
    10. , J. & ,, 2006. "Coordination failure in repeated games with almost-public monitoring," Theoretical Economics, Econometric Society, vol. 1(3), pages 311-340, September.
    11. Fong, Kyna & Sannikov, Yuliy, 2007. "Efficiency in a Repeated Prisoners' Dilemma with Imperfect Private Monitoring," Department of Economics, Working Paper Series qt8vz4q9tr, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    12. Yamamoto, Yuichi, 2012. "Characterizing belief-free review-strategy equilibrium payoffs under conditional independence," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1998-2027.
    13. Heller, Yuval, 2017. "Instability of belief-free equilibria," Journal of Economic Theory, Elsevier, vol. 168(C), pages 261-286.
    14. Sugaya, Takuo & Yamamoto, Yuichi, 2020. "Common learning and cooperation in repeated games," Theoretical Economics, Econometric Society, vol. 15(3), July.
    15. Takuo Sugaya & Yuichi Yamamoto, 2019. "Common Learning and Cooperation in Repeated Games," PIER Working Paper Archive 19-008, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    16. Matsushima Hitoshi, 2020. "Behavioral Theory of Repeated Prisoner’s Dilemma: Generous Tit-For-Tat Strategy," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 20(1), pages 1-11, January.
    17. Sugaya, Takuo & Takahashi, Satoru, 2013. "Coordination failure in repeated games with private monitoring," Journal of Economic Theory, Elsevier, vol. 148(5), pages 1891-1928.
    18. Yutaka Kayaba & Hitoshi Matsushima & Tomohisa Toyama, 2019. "Accuracy and Retaliation in Repeated Games with Imperfect Private Monitoring: Experiments (Revised version of CARF-F-433)," CARF F-Series CARF-F-466, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    19. Yutaka Kayaba & Hitoshi Matsushima & Tomohisa Toyama, 2016. "Accuracy and Retaliation in Repeated Games with Imperfect Private Monitoring: Experiments and Theory," CARF F-Series CARF-F-381, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    20. Hitoshi Matsushima, 2019. "Behavioral Theory of Repeated Prisoner’s Dilemma: Generous Tit-For-Tat Strategy (Forthcoming in the B. E. Journal of Theoretical Economics)," CARF F-Series CARF-F-452, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    21. Yuichi Yamamoto, 2012. "Characterizing Belief-Free Review-Strategy Equilibrium Payoffs under ConditionalIndependence," PIER Working Paper Archive 12-005, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    22. McLean, Richard & Obara, Ichiro & Postlewaite, Andrew, 2014. "Robustness of public equilibria in repeated games with private monitoring," Journal of Economic Theory, Elsevier, vol. 153(C), pages 191-212.

    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-07c70038. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.