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Belief free equilibria


  • Olivier Compte

    () (Paris School of Economics)

  • Andrew Postlewaite

    () (Department of Economics, University of Pennsylvania)


The repeated game literature studies long run/repeated interactions, aiming to understand how repetition may foster cooperation. Conditioning future behavior on past play is crucial in this endeavor. For most situations of interest a given player does not directly observe the actions chosen by other players and must rely on noisy signals he receives about those actions. This is typically incorporated into models by defining a monitoring structure, that is, a collection of probability distributions over the signals each player receives (one distribution for each action profile players may play). Although this is simply meant to capture the fact that players don.t directly observe the actions chosen by others, constructed equilibria often depend on players precisely knowing the distributions, somewhat unrealistic in most problems of interest. This paper aims to show the fragility of belief free equilibrium constructions when one adds shocks to the monitoring structure in repeated games.

Suggested Citation

  • Olivier Compte & Andrew Postlewaite, 2013. "Belief free equilibria," PIER Working Paper Archive 13-020, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  • Handle: RePEc:pen:papers:13-020

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    References listed on IDEAS

    1. Mailath, George J. & Olszewski, Wojciech, 2011. "Folk theorems with bounded recall under (almost) perfect monitoring," Games and Economic Behavior, Elsevier, vol. 71(1), pages 174-192, January.
    2. Kalai, Ehud & Samet, Dov & Stanford, William, 1988. "A Note on Reactive Equilibria in the Discounted Prisoner's Dilemma and Associated Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 17(3), pages 177-186.
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    Cited by:

    1. Compte, Olivier & Postlewaite, Andrew, 2015. "Plausible cooperation," Games and Economic Behavior, Elsevier, vol. 91(C), pages 45-59.

    More about this item


    Repeated games; folk theorem; belief free; robustness;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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