Cooperation and Punishment

Jonathan Thomas and Robert Evans

Game Theory and Information from University Library of Munich, Germany

Abstract: We show that, in repeated common interest games without discounting, strong `perturbation implies efficiency' results require that the perturbations must include strategies which are `draconian' in the sense that they are prepared to punish to the maximum extent possible. Moreover, there is a draconian strategy whose presence in the perturbations guarantees that any equilibrium is efficient. We also argue that the results of Anderlini and Sabourian (1995) using perturbation strategies which are cooperative (and hence non-draconian) are not due to computability per se but to the further restrictions they impose on allowable beliefs.

Keywords: common interests; repeated games; cooperation; computability; reputation (search for similar items in EconPapers)
JEL-codes: C73 D83 L14 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2000-06-13
Note: Type of Document - Acrobat PDF; prepared on IBM PC; pages: 22 ; figures: included. pdf file, prepared from sci word
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Citations: View citations in EconPapers (5)

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Journal Article: Cooperation and Punishment (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpga:0004002

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