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Delayed-response strategies in repeated games with observation lags

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  • Fudenberg, Drew
  • Ishii, Yuhta
  • Kominers, Scott Duke

Abstract

We extend the folk theorem of repeated games to two settings in which players' information about others' play arrives with stochastic lags. In our first model, signals are almost-perfect if and when they do arrive, that is, each player either observes an almost-perfect signal of period-t play with some lag or else never sees a signal of period-t play. The second model has the same lag structure, but the information structure corresponds to a lagged form of imperfect public monitoring, and players are allowed to communicate via cheap-talk messages at the end of each period. In each case, we construct equilibria in “delayed-response strategies,†which ensure that players wait long enough to respond to signals that with high probability all relevant signals are received before players respond. To do so, we extend past work on private monitoring to obtain folk theorems despite the small residual amount of private information.

Suggested Citation

  • Fudenberg, Drew & Ishii, Yuhta & Kominers, Scott Duke, 2014. "Delayed-response strategies in repeated games with observation lags," Scholarly Articles 11880354, Harvard University Department of Economics.
  • Handle: RePEc:hrv:faseco:11880354
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    References listed on IDEAS

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    Cited by:

    1. Lagziel, David & Lehrer, Ehud, 2015. "Approachability with delayed information," Journal of Economic Theory, Elsevier, vol. 157(C), pages 425-444.
    2. Osório, António (António Miguel), 2015. "Brownian Signals: Information Quality, Quantity and Timing in Repeated Games," Working Papers 2072/260962, Universitat Rovira i Virgili, Department of Economics.
    3. Osório, António (António Miguel), 2015. "Some Notes and Comments on the Efficient use of Information in Repeated Games with Poisson Signals," Working Papers 2072/249233, Universitat Rovira i Virgili, Department of Economics.
    4. Spiegler, Ran, 2015. "Agility in repeated games: An example," Economics Letters, Elsevier, vol. 131(C), pages 47-49.
    5. Osório Costa, Antonio Miguel, 2012. "The Limits of Discrete Time Repeated Games:Some Notes and Comments," Working Papers 2072/203171, Universitat Rovira i Virgili, Department of Economics.

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    JEL classification:

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

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