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Communication in repeated network games with imperfect monitoring

Author

Listed:
  • Marie Laclau

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

I consider repeated games with private monitoring played on a network. Each player has a set of neighbors with whom he interacts: a player's payoff depends on his own and his neighbors' actions only. Monitoring is private and imperfect: each player observes his stage payoff but not the actions of his neighbors. Players can communicate costlessly at each stage: communication can be public, private or a mixture of both. Payoffs are assumed to be sensitive to unilateral deviations. First, for any network, a folk theorem holds if some Joint Pairwise Identifiability condition regarding payoff functions is satisfied. Second, a necessary and sufficient condition on the network topology for a folk theorem to hold for all payoff functions is that no two players have the same set of neighbors not counting each other.

Suggested Citation

  • Marie Laclau, 2014. "Communication in repeated network games with imperfect monitoring," Post-Print halshs-01109156, HAL.
    • Handle: RePEc:hal:journl:halshs-01109156
    DOI: 10.1016/j.geb.2014.04.009
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    Cited by:

    1. Marie Laclau & Ludovic Renou & Xavier Venel, 2020. "Robust communication on networks," Papers 2007.00457, arXiv.org, revised Oct 2020.
    2. Laclau, Marie & Renou, Ludovic & Venel, Xavier, 2024. "Communication on networks and strong reliability," Journal of Economic Theory, Elsevier, vol. 217(C).
    3. Marie Laclau & Ludovic Renou & Xavier Venel, 2024. "Communication on networks and strong reliability," Post-Print hal-04836057, HAL.
    4. Laclau, M., 2013. "Repeated games with local monitoring and private communication," Economics Letters, Elsevier, vol. 120(2), pages 332-337.
    5. Joyee Deb & Takuo Sugaya & Alexander Wolitzky, 2020. "The Folk Theorem in Repeated Games With Anonymous Random Matching," Econometrica, Econometric Society, vol. 88(3), pages 917-964, May.
    6. Richard McLean & Ichiro Obara & Andrew Postlewaite, 2025. "Uniformly strict equilibrium for repeated games with private monitoring and communication," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 80(2), pages 493-514, September.
    7. Fainmesser, Itay P. & Goldberg, David A., 2018. "Cooperation in partly observable networked markets," Games and Economic Behavior, Elsevier, vol. 107(C), pages 220-237.
    8. Polanski, Arnold, 2024. "Close-knit neighborhoods: Stability of cooperation in networks," Journal of Economic Theory, Elsevier, vol. 215(C).
    9. Jiang, Xue & Li, Sai-Ping & Mai, Yong & Tian, Tao, 2022. "Study of multinational currency co-movement and exchange rate stability base on network game," Finance Research Letters, Elsevier, vol. 47(PA).
    10. Xiang, Wang, 2020. "Who will watch the watchers? On optimal monitoring networks," Journal of Economic Theory, Elsevier, vol. 187(C).

    More about this item

    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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