Repeated coordination with private learning

Pathikrit Basu, Kalyan Chatterjee, Tetsuya Hoshino and Omer Tamuz

Journal of Economic Theory, 2020, vol. 190, issue C

Abstract: We study a repeated game with payoff externalities and observable actions where two players receive information over time about an underlying payoff-relevant state, and strategically coordinate their actions. Players learn about the true state from private signals, as well as the actions of others. They commonly learn the true state (Cripps et al., 2008), but do not coordinate in every equilibrium. We show that there exist stable equilibria in which players can overcome unfavorable signal realizations and eventually coordinate on the correct action, for any discount factor. For high discount factors, we show that in addition players can also achieve efficient payoffs.

Keywords: Coordination; Repeated games; Private learning; Learning from actions; Common learning (search for similar items in EconPapers)
JEL-codes: C72 C73 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:190:y:2020:i:c:s0022053120300995

DOI: 10.1016/j.jet.2020.105106

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