A Belief-Based Approach to the Repeated Prisoners' Dilemma with Asymmetric Private Monitoring1
نویسنده
چکیده
This paper extends the belief-based approach to repeated prisoners' dilemma with asymmetric private monitoring. We rst nd that the previous belief-based techniques (Sekiguchi (1997), Bhaskar and Obara (2002)) cannot succeed when players' private monitoring technologies are su ciently di erent. We then modify the previous belief-based approach by letting the player with smaller observation errors always randomize between cooperate and defect along the cooperative path of the play. We show that with vanishing observation errors, e ciency and a folk theorem can be approximated using our modi ed belief-based strategies. JEL Classi cation: C72, C73, D82.
منابع مشابه
A belief-based approach to the repeated prisoners' dilemma with asymmetric private monitoring
The belief-based approach for repeated games with private monitoring studies an important class of strategies where at each point of the game, each players optimal continuation strategy is determined by the players beliefs of the private state of the opponents. This paper extends the belief-based approach to the repeated prisonersdilemma with asymmetric private monitoring. We rst nd that t...
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