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Perfect communication equilibria in repeated games with imperfect monitoring

  • Tomala, Tristan
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    This paper introduces an equilibrium concept called perfect communication equilibrium for repeated games with imperfect private monitoring. This concept is a refinement of Myerson's [Myerson, R.B., 1982. Optimal coordination mechanisms in generalized principal agent problems, J. Math. Econ. 10, 67-81] communication equilibrium. A communication equilibrium is perfect if it induces a communication equilibrium of the continuation game, after every history of messages of the mediator. We provide a characterization of the set of corresponding equilibrium payoffs and derive a Folk Theorem for discounted repeated games with imperfect private monitoring.

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    File URL: http://www.sciencedirect.com/science/article/B6WFW-4VSB19J-1/2/8c1021e1a2b909b14dd95b2a61150902
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    Article provided by Elsevier in its journal Games and Economic Behavior.

    Volume (Year): 67 (2009)
    Issue (Month): 2 (November)
    Pages: 682-694

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    Handle: RePEc:eee:gamebe:v:67:y:2009:i:2:p:682-694
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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