Efficiency in repeated games with local interaction and uncertain local monitoring
The paper discusses community enforcement in infinitely repeated, two-action games with local interaction and uncertain monitoring. Each player interacts with and observes only a fixed set of opponents, of whom he is privately informed. The main result shows that when beliefs about the monitoring structure have full support, efficiency can be sustained with sequential equilibria that are independent of the players' beliefs. Stronger results are obtained when only acyclic monitoring structures are allowed or players have unit discount rates. These equilibria satisfy numerous robustness properties.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fernando Vega Redondo, 2002.
"Building Up Social Capital In A Changing World,"
Working Papers. Serie AD
2002-26, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Cho, Myeonghwan, 2011. "Public randomization in the repeated prisoner's dilemma game with local interaction," Economics Letters, Elsevier, vol. 112(3), pages 280-282, September.
- Glen Ellison, 2010. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Levine's Working Paper Archive 631, David K. Levine.
- Gilli, Mario, 1999.
"On Non-Nash Equilibria,"
Games and Economic Behavior,
Elsevier, vol. 27(2), pages 184-203, May.
- David Miller & Nageeb Ali, 2008.
"Cooperation and Collective Enforcement in Networked Societies,"
2008 Meeting Papers
970, Society for Economic Dynamics.
- Glenn Ellison, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 567-588.
- Ben-Porath, E. & Kahneman, M., 1993.
"Communication in Repeated Games with Private Monitoring,"
15-93, Tel Aviv - the Sackler Institute of Economic Studies.
- Ben-Porath, Elchanan & Kahneman, Michael, 1996. "Communication in Repeated Games with Private Monitoring," Journal of Economic Theory, Elsevier, vol. 70(2), pages 281-297, August.
- McBride, Michael, 2006. "Imperfect monitoring in communication networks," Journal of Economic Theory, Elsevier, vol. 126(1), pages 97-119, January.
- Takahashi, Satoru, 2010. "Community enforcement when players observe partners' past play," Journal of Economic Theory, Elsevier, vol. 145(1), pages 42-62, January.
- Matthew O. Jackson & Tomas Rodriguez-Barraquer & Xu Tan, 2012. "Social Capital and Social Quilts: Network Patterns of Favor Exchange," American Economic Review, American Economic Association, vol. 102(5), pages 1857-1897, August.
- Itay Fainmesser, 2010.
"Community Structure and Market Outcomes: A Repeated Games in Networks Approach,"
2010-14, Brown University, Department of Economics.
- Itay P. Fainmesser, 2012. "Community Structure and Market Outcomes: A Repeated Games-in-Networks Approach," American Economic Journal: Microeconomics, American Economic Association, vol. 4(1), pages 32-69, February.
- Renault, J. & Tomala, T., 1997.
"Repeated Proximity Games,"
Papiers d'Economie MathÃ©matique et Applications
97.14, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Markus Kinateder, 2008.
"Repeated Games Played in a Network,"
2008.22, Fondazione Eni Enrico Mattei.
- Myeonghwan Cho, 2014. "Cooperation in the repeated prisoner's dilemma game with local interaction and local communication," International Journal of Economic Theory, The International Society for Economic Theory, vol. 10(3), pages 235-262, 09.
- Joyee Deb, 2008. "Cooperation and Community Responsibility: A Folk Theorem for Repeated Matching Games with Names," Working Papers 08-24, New York University, Leonard N. Stern School of Business, Department of Economics.
- Alexander Wolitzky, 2013. "Cooperation with Network Monitoring," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 395-427.
- Michihiro Kandori, 1992. "Social Norms and Community Enforcement," Review of Economic Studies, Oxford University Press, vol. 59(1), pages 63-80.
- Michi Kandori, 2010. "Social Norms and Community Enforcement," Levine's Working Paper Archive 630, David K. Levine.