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Public randomization in the repeated prisoner's dilemma game with local interaction

  • Cho, Myeonghwan

We consider a situation in which each agent observes only their neighbor's actions and locally interacts with them by playing prisoner's dilemma games. Introducing a public randomization, we construct an equilibrium which sustains cooperation and in which cooperation eventually resumes after any history.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176511001996
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 112 (2011)
Issue (Month): 3 (September)
Pages: 280-282

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Handle: RePEc:eee:ecolet:v:112:y:2011:i:3:p:280-282
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Ellison, Glenn, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 567-88, July.
  2. George J. Mailath & Stephen Morris, 1999. "Repeated Games with Almost-Public Monitoring," CARESS Working Papres almost-pub, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences, revised 01 Sep 2000.
  3. Fudenberg, D. & Levine, D.K. & Maskin, E., 1989. "The Folk Theorem With Inperfect Public Information," Working papers 523, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Kandori, Michihiro, 1992. "Repeated Games Played by Overlapping Generations of Players," Review of Economic Studies, Wiley Blackwell, vol. 59(1), pages 81-92, January.
  5. Kandori, Michihiro, 1992. "Social Norms and Community Enforcement," Review of Economic Studies, Wiley Blackwell, vol. 59(1), pages 63-80, January.
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