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Perfect communication equilibria in repeated games with imperfect monitoring

Author

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  • Tristan Tomala

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper introduces an equilibrium concept called perfect communication equilibrium for repeated games with imperfect private monitoring. This concept is a refinement of Myerson's [Myerson, R.B., 1982. Optimal coordination mechanisms in generalized principal agent problems, J. Math. Econ. 10, 67–81] communication equilibrium. A communication equilibrium is perfect if it induces a communication equilibrium of the continuation game, after every history of messages of the mediator. We provide a characterization of the set of corresponding equilibrium payoffs and derive a Folk Theorem for discounted repeated games with imperfect private monitoring.

Suggested Citation

  • Tristan Tomala, 2009. "Perfect communication equilibria in repeated games with imperfect monitoring," Post-Print hal-00464537, HAL.
    • Handle: RePEc:hal:journl:hal-00464537
    DOI: 10.1016/j.geb.2009.02.005
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    References listed on IDEAS

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    21. Tristan Tomala & Olivier Gossner, 2004. "Secret correlation in repeated games with signals," Working Papers hal-00587232, HAL.
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    Cited by:

    1. Drew Fudenberg & David K. Levine & Satoru Takahashi, 2008. "Perfect public equilibrium when players are patient," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 16, pages 345-367, World Scientific Publishing Co. Pte. Ltd..
    2. Deb, Joyee & González-Díaz, Julio & Renault, Jérôme, 2016. "Uniform folk theorems in repeated anonymous random matching games," Games and Economic Behavior, Elsevier, vol. 100(C), pages 1-23.
    3. Johannes H�rner & Satoru Takahashi & Nicolas Vieille, 2012. "On the Limit Equilibrium Payoff Set in Repeated and Stochastic Games," Working Papers 1397, Princeton University, Department of Economics, Econometric Research Program..
    4. David Rahman, 2012. "But Who Will Monitor the Monitor?," American Economic Review, American Economic Association, vol. 102(6), pages 2767-2797, October.
    5. Ashkenazi-Golan, Galit & Lehrer, Ehud, 2019. "Blackwell's comparison of experiments and discounted repeated games," Games and Economic Behavior, Elsevier, vol. 117(C), pages 163-194.
    6. Hörner, Johannes & Takahashi, Satoru, 2016. "How fast do equilibrium payoff sets converge in repeated games?," Journal of Economic Theory, Elsevier, vol. 165(C), pages 332-359.
    7. Heng Liu, 2017. "Correlation and unmediated cheap talk in repeated games with imperfect monitoring," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1037-1069, November.
    8. Sugaya, Takuo & Wolitzky, Alexander, 2017. "Bounding equilibrium payoffs in repeated games with private monitoring," Theoretical Economics, Econometric Society, vol. 12(2), May.
    9. McLean, Richard & Obara, Ichiro & Postlewaite, Andrew, 2014. "Robustness of public equilibria in repeated games with private monitoring," Journal of Economic Theory, Elsevier, vol. 153(C), pages 191-212.
    10. Hörner, Johannes & Takahashi, Satoru & Vieille, Nicolas, 2014. "On the limit perfect public equilibrium payoff set in repeated and stochastic games," Games and Economic Behavior, Elsevier, vol. 85(C), pages 70-83.
    11. Tristan Tomala, 2013. "Belief-Free Communication Equilibria in Repeated Games," Mathematics of Operations Research, INFORMS, vol. 38(4), pages 617-637, November.

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