Characterizing Belief-Free Review-Strategy Equilibrium Payoffs under ConditionalIndependence
This paper proposes and studies a tractable subset of Nash equilibria, belief-free review-strategy equilibria, in repeated games with private monitoring. The payoff set of this class of equilibria is characterized in the limit as the discount factor converges to one for games where players observe statistically independent signals. As an application, we develop a simple sufficient condition for the existence of asymptotically efficient equilibria, and establish a folk theorem for N-player prisoner’s dilemma. All these results are robust to a perturbation of the signal distribution, and hence remain true even under almost-independent monitoring.
|Date of creation:||22 Feb 2012|
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Web page: http://economics.sas.upenn.edu/pier
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- Jeffrey C. Ely & Johannes Horner & Wojciech Olszewski, 2003.
"Belief-free Equilibria in Repeated Games,"
Levine's Working Paper Archive
666156000000000367, David K. Levine.
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"Repeated Games with Private Monitoring: Two Players,"
CIRJE-F-242, CIRJE, Faculty of Economics, University of Tokyo.
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- Joseph E. Harrington, Jr. & Andrzej Skrzypacz, 2009.
"Private Monitoring and Communication in Cartels: Explaining Recent Collusive Practices,"
Economics Working Paper Archive
555, The Johns Hopkins University,Department of Economics.
- Joseph E. Harrington & Andrzej Skrzypacz, 2011. "Private Monitoring and Communication in Cartels: Explaining Recent Collusive Practices," American Economic Review, American Economic Association, vol. 101(6), pages 2425-2449, October.
- Johannes Horner & Wojciech Olszewski, 2005.
"The Folk Theorem for Games with Private, Almost-Perfect Monitoring,"
NajEcon Working Paper Reviews
- Johannes Hörner & Wojciech Olszewski, 2006. "The Folk Theorem for Games with Private Almost-Perfect Monitoring," Econometrica, Econometric Society, vol. 74(6), pages 1499-1544, November.
- Ichiro Obara, 2005.
"Folk Theorem with Communication,"
UCLA Economics Online Papers
366, UCLA Department of Economics.
- Michihiro Kandori & Hitoshi Matsushima, 1997. "Private observation and Communication and Collusion," Levine's Working Paper Archive 1256, David K. Levine.
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