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Linking of Repeated Games. When Does It Lead to More Cooperation and Pareto Improvements?

  • Pierre von Mouche

    (Wageningen Universiteit)

  • Henk Folmer

    (Wageningen Universiteit and Rijksuniversiteit Groning)

Linking of repeated games and exchange of concessions in fields of relative strength may lead to more cooperation and to Pareto improvements relative to the situation where each game is played separately. In this paper we formalize these statements, provide some general results concerning the conditions for more cooperation and Pareto improvements to materialize or not and analyze the relation between both. Special attention is paid to the role of asymmetries.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.60.

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Date of creation: May 2007
Date of revision:
Handle: RePEc:fem:femwpa:2007.60
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  1. Just, Richard E. & Netanyahu, Sinaia, 2000. "The importance of structure in linking games," Agricultural Economics, Blackwell, vol. 24(1), pages 87-100, December.
  2. Benoit, Jean-Pierre & Krishna, Vijay, 1996. "The Folk Theorems For Repeated Games: A Synthesis," Working Papers 96-08, C.V. Starr Center for Applied Economics, New York University.
  3. Henk Folmer & Pierre Mouche & Shannon Ragland, 1993. "Interconnected games and international environmental problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(4), pages 313-335, August.
  4. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
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