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 Hörner & Wojciech Olszewski, 2005.
"Belief-Free Equilibria in Repeated Games,"
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- Joseph E. Harrington & Andrzej Skrzypacz, 2011.
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- Hitoshi Matsushima, 2004.
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Econometric Society, vol. 72(3), pages 823-852, 05.
- Hitoshi Matsushima, 2003. "Repeated Games with Private Monitoring: Two Players," CIRJE F-Series CIRJE-F-242, CIRJE, Faculty of Economics, University of Tokyo.
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- Ichiro Obara, 2005.
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366, UCLA Department of Economics.
- Johannes Hörner & Wojciech Olszewski, 2006.
"The Folk Theorem for Games with Private Almost-Perfect Monitoring,"
Econometric Society, vol. 74(6), pages 1499-1544, November.
- Johannes Horner & Wojciech Olszewski, 2005. "The Folk Theorem for Games with Private, Almost-Perfect Monitoring," NajEcon Working Paper Reviews 172782000000000006, www.najecon.org.
- repec:clu:wpaper:0203-14 is not listed on IDEAS
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