Interlinkage and Generous Tit-for-Tat Strategy
We investigate an infinitely repeated prisoners' dilemma with imperfect monitoring and projects the possibility that the interlinkage of the players' distinct activities enhances implicit collusion. We show a necessary and sufficient condition for the existence of generous tit-for-tat Nash equilibrium. Such an equilibrium, if it exists, is unique. This equilibrium achieves approximate efficiency when monitoring is almost perfect, where the discount factors are fixed.
|Date of creation:||Feb 2013|
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- Hitoshi Matsushima, 2003.
"Repeated Games with Private Monitoring: Two Players,"
CIRJE-F-242, CIRJE, Faculty of Economics, University of Tokyo.
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Econometric Society World Congress 2000 Contributed Papers
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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.
- Matsushima, Hitoshi, 1991. "On the theory of repeated games with private information : Part I: anti-folk theorem without communication," Economics Letters, Elsevier, vol. 35(3), pages 253-256, March.
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