How fast do equilibrium payoff sets converge in repeated games?

Johannes Hörner and Satoru Takahashi

Journal of Economic Theory, 2016, vol. 165, issue C, 332-359

Abstract: We provide tight bounds on the rate of convergence of the equilibrium payoff sets for repeated games under both perfect and imperfect public monitoring. The distance between the equilibrium payoff set and its limit vanishes at rate (1−δ)1/2 under perfect monitoring, and at rate (1−δ)1/4 under imperfect monitoring. For strictly individually rational payoff vectors, these rates improve to 0 (i.e., all strictly individually rational payoff vectors are exactly achieved as equilibrium payoffs for δ high enough) and (1−δ)1/2, respectively.

Keywords: Repeated games; Rates of convergence (search for similar items in EconPapers)
JEL-codes: C72 C73 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: How Fast Do Equilibrium Payo Sets Converge in Repeated Games? (2017)
Working Paper: How Fast Do Equilibrium Payoff Sets Converge in Repeated Games" (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:165:y:2016:i:c:p:332-359

DOI: 10.1016/j.jet.2016.05.001

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