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Folk theorem with communication

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  • Obara, Ichiro

Abstract

This paper proves a new folk theorem for repeated games with private monitoring and communication, extending the idea of delayed communication in Compte [O. Compte, Communication in repeated games with imperfect private monitoring, Econometrica 66 (1998) 597-626] to the case where private signals are correlated. The sufficient condition for the folk theorem is generically satisfied with more than two players, even when other well-known conditions are not. The folk theorem also applies to some two-players repeated games.

Suggested Citation

  • Obara, Ichiro, 2009. "Folk theorem with communication," Journal of Economic Theory, Elsevier, vol. 144(1), pages 120-134, January.
    • Handle: RePEc:eee:jetheo:v:144:y:2009:i:1:p:120-134
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