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.:
- Gilli, Mario, 1999.
"On Non-Nash Equilibria,"
Games and Economic Behavior,
Elsevier, vol. 27(2), pages 184-203, May.
- Glen Ellison, 2010.
"Cooperation in the Prisoner's Dilemma with Anonymous Random Matching,"
Levine's Working Paper Archive
631, David K. Levine.
- Ellison, Glenn, 1994. "Cooperation in the Prisoner's Dilemma with Anonymous Random Matching," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 567-88, July.
- 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.
- Itay Fainmesser, 2010. "Community Structure and Market Outcomes: A Repeated Games in Networks Approach," Working Papers 2010-14, Brown University, Department of Economics.
- 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.
- David Miller & Nageeb Ali, 2008.
"Cooperation and Collective Enforcement in Networked Societies,"
2008 Meeting Papers
970, Society for Economic Dynamics.
- Markus Kinateder, 2008.
"Repeated Games Played in a Network,"
2008.22, Fondazione Eni Enrico Mattei.
- 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.
- Ben-Porath, E. & Kahneman, M., 1993. "Communication in Repeated Games with Private Monitoring," Papers 15-93, Tel Aviv - the Sackler Institute of Economic Studies.
- Vega-Redondo, Fernando, 2006.
"Building up social capital in a changing world,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 30(11), pages 2305-2338, November.
- Alexander Wolitzky, 2013. "Cooperation with Network Monitoring," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 395-427.
- 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 1857-97, August.
- JÊrÆme Renault & Tristan Tomala, 1998.
"Repeated proximity games,"
International Journal of Game Theory,
Springer, vol. 27(4), pages 539-559.
- 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.
- McBride, Michael, 2006. "Imperfect monitoring in communication networks," Journal of Economic Theory, Elsevier, vol. 126(1), pages 97-119, January.
- Kandori, Michihiro, 1992.
"Social Norms and Community Enforcement,"
Review of Economic Studies,
Wiley Blackwell, vol. 59(1), pages 63-80, January.
- 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.
- Takahashi, Satoru, 2010. "Community enforcement when players observe partners' past play," Journal of Economic Theory, Elsevier, vol. 145(1), pages 42-62, January.
When requesting a correction, please mention this item's handle: RePEc:the:publsh:1200. 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: (Martin J. Osborne)
If references are entirely missing, you can add them using this form.