Repeated Games Without Public Randomization: A Constructive Approach∗

نویسندگان

  • Ani Dasgupta
  • Sambuddha Ghosh
چکیده

We study infinitely repeated games with perfect monitoring and without public randomization devices. Both symmetric and asymmetric discounting cases are considered; a new geometric construct called “self-accessibility” is proposed and used to unify the analyses of these two cases. In the case of symmetric discounting, our approach delivers a constructive version of the folk theorem of Fudenberg and Maskin (1991). If discounting is asymmetric, we show that any payoff that is in the interior of the smallest rectangular region that contains the stage game feasible set is realizable in the repeated game for identifiable sets of discount factor vectors. Next, we provide necessary and sufficient conditions for payoff vectors to be subgame-perfect equilibrium payoffs for some discount factor vector. Sets that are defined by these conditions are easily described; moreover, discount factor vectors and strategies that support a specific payoff vector can be explicitly constructed.

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تاریخ انتشار 2017