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Imperfect Monitoring and Impermanent Reputations

Author

Listed:
  • Martin W. Cripps

    () (Olin School of Business, Washington University in St. Louis)

  • George J. Mailath

    () (Department of Economics, University of Pennsylvania)

  • Larry Samuelson

    () (Department of Economics, University of Wisconsin-Madison)

Abstract

We study the long-run sustainability of reputations in games with imperfect public monitoring. It is impossible to maintain a permanent reputation for playing a strategy that does not play an equilibrium of the game without uncertainty about types. Thus, a player cannot indefinitely sustain a reputation for non-credible behavior in the presence of imperfect monitoring.

Suggested Citation

  • Martin W. Cripps & George J. Mailath & Larry Samuelson, 2002. "Imperfect Monitoring and Impermanent Reputations," PIER Working Paper Archive 03-016, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 30 May 2003.
  • Handle: RePEc:pen:papers:03-016
    as

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    References listed on IDEAS

    as
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    5. Cripps, Martin W & Thomas, Jonathan P, 1995. "Reputation and Commitment in Two-Person Repeated Games without Discounting," Econometrica, Econometric Society, vol. 63(6), pages 1401-1419, November.
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    More about this item

    Keywords

    Reputation; Imperfect Monitoring; Repeated Games;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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