Finite memory and imperfect monitoring

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Finite memory and imperfect monitoring

In this paper, we consider a class of infinitely repeated games with imperfect public monitoring. We look at strongly symmetric perfect public equilibria with memory K: equilibria in which strategies are restricted to depend only on the last K observations of public signals. Define ΓK to be the set of payoffs of equilibria with memory K. We show that for some parameter settings, ΓK = Γ∞ for suf...

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Imperfect Monitoring and Impermanent Reputations1

We study the long-run sustainability of reputations in games with imperfect public monitoring. It is impossible to maintain a permanent reputation for playing a strategy that does not play an equilibrium of the game without uncertainty about types. Thus, a player cannot indefinitely sustain a reputation for non-credible behavior in the presence of imperfect monitoring. Journal of Economic Liter...

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ژورنال

عنوان ژورنال: Games and Economic Behavior

سال: 2005

ISSN: 0899-8256

DOI: 10.1016/j.geb.2004.07.001