On the Full Dimensionality Assumption for the Discounted Folk Theorem∗
نویسنده
چکیده
A sufficient condition for the discounted Folk Theorem is that for every individually rational payoff vector u, there exists another individually rational payoff vector v such that v < u. We present an example of a full dimensional game where this property fails to be satisfied. Furthermore, we present a simple and direct proof that full dimensionality implies a weaker, but still sufficient property for the discounted Folk Theorem. Journal of Economic Literature Classification Numbers: C73
منابع مشابه
The Folk Theorem for Games with Private Almost-Perfect Monitoring∗
We prove the folk theorem for discounted repeated games under private, almost-perfect monitoring. Our result covers all finite, n-player games satisfying the usual full-dimensionality condition. Mixed strategies are allowed in determining the individually rational payoffs. We assume no cheap-talk communication between players and no public randomization device.
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