Purification in the Infinitely-Repeated Prisoners’ Dilemma, Second Version
This paper investigates the Harsanyi (1973)-purifiability of mixed strategies in the repeated prisoners’ dilemma with perfect monitoring. We perturb the game so that in each period, a player receives a private payoff shock which is independently and identically distributed across players and periods. We focus on the purifiability of one-period memory mixed strategy equilibria used by Ely and Välimäki (2002) in their study of the repeated prisoners’ dilemma with private monitoring. We find that any such strategy profile is not the limit of one-period memory equilibrium strategy profiles of the perturbed game, for almost all noise distributions. However, if we allow infinite memory strategies in the perturbed game, then any completely-mixed equilibrium is purifiable.
|Date of creation:||13 Jul 2006|
|Date of revision:||20 Aug 2007|
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Web page: http://economics.sas.upenn.edu/pier
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- Sekiguchi, Tadashi, 1997. "Efficiency in Repeated Prisoner's Dilemma with Private Monitoring," Journal of Economic Theory, Elsevier, vol. 76(2), pages 345-361, October.
- Jeffrey C. Ely & Johannes Hörner & Wojciech Olszewski, 2005.
"Belief-Free Equilibria in Repeated Games,"
Econometric Society, vol. 73(2), pages 377-415, 03.
- Bhaskar, V. & van Damme, E.E.C., 2002.
"Moral hazard and private monitoring,"
Other publications TiSEM
432fc615-feb9-4c90-8a14-e, Tilburg University, School of Economics and Management.
- Jeffrey C. Ely & Juuso Valimaki, 1999.
"A Robust Folk Theorem for the Prisoner's Dilemma,"
1264, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Jeffrey Ely, 2000. "A Robust Folk Theorem for the Prisoners' Dilemma," Econometric Society World Congress 2000 Contributed Papers 0210, Econometric Society.
- Stephen Morris, 2006. "Purification," Levine's Bibliography 321307000000000470, UCLA Department of Economics.
- Michihiro Kandori & Ichiro Obara, 2004.
"Efficiency in Repeated Games Revisited: The Role of Private Strategies,"
122247000000000055, UCLA Department of Economics.
- Michihiro Kandori & Ichiro Obara, 2006. "Efficiency in Repeated Games Revisited: The Role of Private Strategies," Econometrica, Econometric Society, vol. 74(2), pages 499-519, 03.
- Michihiro Kandori & Ichiro Obara, 2003. "Efficiency in Repeated Games Revisited: The Role of Private Strategies," UCLA Economics Working Papers 826, UCLA Department of Economics.
- Michihiro Kandori & Ichiro Obara, 2003. "Efficiency in Repeated Games Revisited: The Role of Private Strategies," CIRJE F-Series CIRJE-F-255, CIRJE, Faculty of Economics, University of Tokyo.
- Govindan, Srihari & Reny, Philip J. & Robson, Arthur J., 2003. "A short proof of Harsanyi's purification theorem," Games and Economic Behavior, Elsevier, vol. 45(2), pages 369-374, November.
- V. Bhaskar, 1998. "Informational Constraints and the Overlapping Generations Model: Folk and Anti-Folk Theorems," Review of Economic Studies, Oxford University Press, vol. 65(1), pages 135-149.
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