Efficiency in Repeated Prisoner's Dilemma with Private Monitoring
نویسنده
چکیده
This paper analyzes repeated games with private monitoring, where in each period each player receives a signal of the other player's action in the previous period, and that signal is private information. Previous literature on discounted repeated games with private monitoring has not shown whether or not (nearly) efficient equilibria exist. For a repeated prisoner's dilemma satisfying a certain assumption regarding stage game payoffs, we show that there exists a nearly efficient sequential equilibrium, provided that imperfectness of signals is small and players are patient. Journal of Economic Literature Classification number: C73.
منابع مشابه
Sequential Equilibria in the Repeated Prisoners’ Dilemma with Private Monitoring
We analyze the infinitely repeated prisoners’ dilemma with imperfect private monitoring. The efficient outome can be approximated in any prisoners’ dilemma game, while every individually rational feasible payoff can be approximated in a class of prisoner dilemma games. Our results require that monitoring be sufficiently accurate but do not require very low discounting.
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