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Infinitely repeated games with public monitoring and monetary transfers

  • Goldlücke, Susanne
  • Kranz, Sebastian

This paper studies infinitely repeated games with imperfect public monitoring and the possibility of monetary transfers. It is shown that all public perfect equilibrium payoffs can be implemented with a simple class of stationary equilibria that use stick-and-carrot punishments. A fast algorithm is developed that exactly computes the set of pure strategies equilibrium payoffs for all discount factors.

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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 147 (2012)
Issue (Month): 3 ()
Pages: 1191-1221

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Handle: RePEc:eee:jetheo:v:147:y:2012:i:3:p:1191-1221
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