Discounted Stochastic Games with Voluntary Transfers
This paper studies discounted stochastic games perfect or imperfect public monitoring and the opportunity to conduct voluntary monetary transfers. We show that for all discount factors every public perfect equilibrium payoff can be implemented with a simple class of equilibria that have a stationary structure on the equilibrium path and optimal penal codes with a stick and carrot structure. We develop algorithms that exactly compute or approximate the set of equilibrium payoffs and find simple equilibria that implement these payoffs.
|Date of creation:||Jan 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA|
Phone: (203) 432-3702
Fax: (203) 432-6167
Web page: http://cowles.yale.edu/
More information through EDIRC
|Order Information:|| Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA|
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.:
- Goldlücke, Susanne & Kranz, Sebastian, 2012.
"Infinitely repeated games with public monitoring and monetary transfers,"
Journal of Economic Theory,
Elsevier, vol. 147(3), pages 1191-1221.
- Goldluecke, Susanne & Kranz, Sebastian, 2010. "In?nitely Repeated Games with Public Monitoring and Monetary Transfers," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 332, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Skrzypacz, Andrzej & Harrington, Joseph E., 2005.
"Collusion under Monitoring of Sales,"
1885, Stanford University, Graduate School of Business.
- Baliga, Sandeep & Evans, Robert, 2000. "Renegotiation in Repeated Games with Side-Payments," Games and Economic Behavior, Elsevier, vol. 33(2), pages 159-176, November.
- W. Bentley MacLeod & James M. Malcomson, 1986.
"Implicit Contracts, Incentive Compatibility, and Involuntary Unemployment,"
585, Queen's University, Department of Economics.
- MacLeod, W Bentley & Malcomson, James M, 1989. "Implicit Contracts, Incentive Compatibility, and Involuntary Unemployment," Econometrica, Econometric Society, vol. 57(2), pages 447-80, March.
- Andrew Ching, 2004.
"A Dynamic Oligopoly Structural Model for the Prescription Drug Market After Patent Expiration,"
Econometric Society 2004 Far Eastern Meetings
735, Econometric Society.
- Andrew T. Ching, 2010. "A Dynamic Oligopoly Structural Model For The Prescription Drug Market After Patent Expiration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 1175-1207, November.
- David A. Miller & Joel Watson, 2013. "A Theory of Disagreement in Repeated Games With Bargaining," Econometrica, Econometric Society, vol. 81(6), pages 2303-2350, November.
- Fudenberg, Drew & Yamamoto, Yuichi, 2011.
"The Folk Theorem for Irreducible Stochastic Games with Imperfect Public Monitoring,"
8896226, Harvard University Department of Economics.
- Fudenberg, Drew & Yamamoto, Yuichi, 2011. "The folk theorem for irreducible stochastic games with imperfect public monitoring," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1664-1683, July.
- Klimenko, Mikhail & Ramey, Garey & Watson, Joel, 2008.
"Recurrent trade agreements and the value of external enforcement,"
Journal of International Economics,
Elsevier, vol. 74(2), pages 475-499, March.
- Klimenko, Mikhail & Ramey, Garey & Watson, Joel, 2001. "Recurrent Trade Agreements and the Value of External Enforcement," University of California at San Diego, Economics Working Paper Series qt9xm2x5w7, Department of Economics, UC San Diego.
- Jonathan Levin, 2000.
"Relational Incentive Contracts,"
01002, Stanford University, Department of Economics.
- Gautam Gowrisankaran & Robert J. Town, 1997. "Dynamic Equilibrium in the Hospital Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(1), pages 45-74, 03.
- Jonathan Levin, 2002. "Multilateral Contracting and the Employment Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 1075-1103.
- Kranz, Sebastian & Ohlendorf, Susanne, 2009. "Renegotiation-Proof Relational Contracts with Side Payments," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 259, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Katherine Doornik, 2006. "Relational Contracting in Partnerships," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(2), pages 517-548, 06.
- C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
- Fong, Yuk-fai & Surti, Jay, 2009. "The optimal degree of cooperation in the repeated Prisoners' Dilemma with side payments," Games and Economic Behavior, Elsevier, vol. 67(1), pages 277-291, September.
- Kenneth L. Judd & Sevin Yeltekin & James Conklin, 2003. "Computing Supergame Equilibria," Econometrica, Econometric Society, vol. 71(4), pages 1239-1254, 07.
- David Besanko & Ulrich Doraszelski & Yaroslav Kryukov & Mark Satterthwaite, 2010. "Learning-by-Doing, Organizational Forgetting, and Industry Dynamics," Econometrica, Econometric Society, vol. 78(2), pages 453-508, 03.
- Maskin, Eric & Tirole, Jean, 2001.
"Markov Perfect Equilibrium: I. Observable Actions,"
Journal of Economic Theory,
Elsevier, vol. 100(2), pages 191-219, October.
- Eric Maskin & Jean Tirole, 1997. "Markov Perfect Equilibrium, I: Observable Actions," Harvard Institute of Economic Research Working Papers 1799, Harvard - Institute of Economic Research.
- Johannes Hörner & Takuo Sugaya & Satoru Takahashi & Nicolas Vieille, 2011. "Recursive Methods in Discounted Stochastic Games: An Algorithm for δ→ 1 and a Folk Theorem," Econometrica, Econometric Society, vol. 79(4), pages 1277-1318, 07.
- Luis Rayo, 2007. "Relational Incentives and Moral Hazard in Teams," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 937-963.
When requesting a correction, please mention this item's handle: RePEc:cwl:cwldpp:1847. 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: (Matthew C. Regan)
If references are entirely missing, you can add them using this form.