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Folk Theorem in Repeated Games with Private Monitoring

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  • Takuo Sugaya

Abstract

We show that the folk theorem holds generically for the repeated two-player game with private monitoring if the support of each player’s signal distribution is sufficiently large. Neither cheap talk communication nor public randomization is necessary.

Suggested Citation

  • Takuo Sugaya, 2022. "Folk Theorem in Repeated Games with Private Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(4), pages 2201-2256.
    • Handle: RePEc:oup:restud:v:89:y:2022:i:4:p:2201-2256.
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    File URL: http://hdl.handle.net/10.1093/restud/rdab079
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    References listed on IDEAS

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    1. Drew Fudenberg & David K. Levine, 2008. "The Nash-threats folk theorem with communication and approximate common knowledge in two player games," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 15, pages 331-343, World Scientific Publishing Co. Pte. Ltd..
    2. Joyee Deb & Takuo Sugaya & Alexander Wolitzky, 2020. "The Folk Theorem in Repeated Games With Anonymous Random Matching," Econometrica, Econometric Society, vol. 88(3), pages 917-964, May.
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    11. Aoyagi, Masaki, 2002. "Collusion in Dynamic Bertrand Oligopoly with Correlated Private Signals and Communication," Journal of Economic Theory, Elsevier, vol. 102(1), pages 229-248, January.
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    Cited by:

    1. Jehiel, Philippe & Samuelson, Larry, 2023. "The analogical foundations of cooperation," Journal of Economic Theory, Elsevier, vol. 208(C).
    2. Carmona, Guilherme & Laohakunakorn, Krittanai, 2023. "The folk theorem for the prisoner's dilemma with endogenous private monitoring," Journal of Economic Theory, Elsevier, vol. 213(C).
    3. Xu, Xue & Zheng, Kun, 2024. "Private monitoring revisited: When does a shared history matter?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 112(C).
    4. Sugaya, Takuo & Wolitzky, Alexander, 0. "Non-recursive dynamic incentives: a rate of convergence approach," Theoretical Economics, Econometric Society.
    5. Olivier Compte, 2023. "Q-learning with biased policy rules," Papers 2304.12647, arXiv.org, revised Oct 2023.

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