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Common Learning and Cooperation in Repeated Games

Author

Listed:
  • Takuo Sugaya

    () (Stanford Graduate School of Business)

  • Yuichi Yamamoto

    () (Department of Economics, University of Pennsylvania)

Abstract

We study repeated games in which players learn the unknown state of the world by observing a sequence of noisy private signals. We find that for generic signal distributions, the folk theorem obtains using ex-post equilibria. In our equilibria, players commonly learn the state, that is, the state becomes asymptotic common knowledge.

Suggested Citation

  • Takuo Sugaya & Yuichi Yamamoto, 2019. "Common Learning and Cooperation in Repeated Games," PIER Working Paper Archive 19-008, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  • Handle: RePEc:pen:papers:19-008
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    File URL: https://economics.sas.upenn.edu/system/files/working-papers/19-008%20PIER%20Paper%20Submission.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    repeated game; private monitoring; incomplete information; ex-post equilibrium; individual learning;

    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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