Communication and cooperation in repeated games
Yu Awaya () and
Vijay Krishna
Theoretical Economics, 2019, vol. 14, issue 2
Abstract:
We study the role of communication in repeated games with private monitoring. We first show that without communication, the set of Nash equilibrium payoffs in such games is a subset of the set of ε-coarse correlated equilibrium payoffs (ε-CCE) of the underlying one-shot game. The value of ε depends on the discount factor and the quality of monitoring. We then identify conditions under which there are equilibria with "cheap talk" that result in nearly efficient payoffs outside the set ε-CCE. Thus, in our model, communication is necessary for cooperation.
Keywords: Repeated games; private monitoring; communication (search for similar items in EconPapers)
JEL-codes: C73 (search for similar items in EconPapers)
Date: 2019-05-28
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)
Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20190513/23816/692 (application/pdf)
Related works:
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:the:publsh:3049
Access Statistics for this article
Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill
More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().