Repeated games with public deterministic monitoring

Marie Laclau () and Tristan Tomala

Journal of Economic Theory, 2017, vol. 169, issue C, 400-424

Abstract: We consider repeated games with compact actions sets and pure strategies in which players commonly observe a public signal which reveals imperfectly the action profile. We characterize the set of payoffs profiles that can be sustained by a perfect equilibrium, as players become increasingly patient. There are two conditions: admissibility and joint rationality. An admissibly feasible payoff can be achieved by an action profile that offers no unilateral deviation which is both undetectable and profitable. It is jointly rational if for all weights on players, the weighted average payoff is greater than or equal to the minmax level of the weighted average payoff function. This characterization is alternative to the one provided by the “score method” of Fudenberg and Levine (1994). We provide a simple construction of equilibrium strategies based on cooperation, punishments and rewards. Punishments rely on Blackwell's approachability algorithm.

Keywords: Repeated games; Public monitoring; Pure strategies; Approachability (search for similar items in EconPapers)
JEL-codes: C73 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053117300285
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Repeated games with public deterministic monitoring (2017)
Working Paper: Repeated games with public deterministic monitoring (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:169:y:2017:i:c:p:400-424

DOI: 10.1016/j.jet.2017.02.011

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().