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Imperfect Monitoring and Impermanent Reputations

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  • Martin W. Cripps
  • George J. Mailath
  • Larry Samuelson

Abstract

We study the long-run sustainability of reputations in games with imperfect public monitoring. It is impossible to maintain a permanent reputation for playing a strategy that does not play an equilibrium of the game without uncertainty about types. Thus, a player cannot indefinitely sustain a reputation for noncredible behavior in the presence of imperfect monitoring. Copyright The Econometric Society 2004.

Suggested Citation

  • Martin W. Cripps & George J. Mailath & Larry Samuelson, 2004. "Imperfect Monitoring and Impermanent Reputations," Econometrica, Econometric Society, vol. 72(2), pages 407-432, March.
    • Handle: RePEc:ecm:emetrp:v:72:y:2004:i:2:p:407-432
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    File URL: http://hdl.handle.net/10.1111/j.1468-0262.2004.00496.x
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    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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