A belief-based approach to the repeated prisoners' dilemma with asymmetric private monitoring
This paper extends the belief-based approach to the repeated prisoners' dilemma with asymmetric private monitoring. We first find that the previous belief-based techniques [T. Sekiguchi, Efficiency in repeated prisoners' dilemma with private monitoring, J. Econ. Theory 76 (1997) 345-361; V. Bhaskar, I. Obara, Belief-based equilibria in the repeated prisoners' dilemma with private monitoring, J. Econ. Theory 102 (2002) 40-69] cannot succeed when players' private monitoring technologies are sufficiently different. We then modify the previous belief-based approach by letting the player with smaller observation errors always randomize between cooperate and defect along the cooperative path of the play. We show that with vanishing observation errors, efficiency and a folk theorem can be approximated using our modified belief-based strategies.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:eee:jetheo:v:145:y:2010:i:1:p:402-420. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.