Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31204 
Year of Publication: 
2008
Series/Report no.: 
Discussion Paper No. 1462
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
Abstract: 
under the profile after two distinct histories that agree in the last L periods is equal. Mailath and Morris (2002, 2006) proved that any strict equilibrium in bounded-recall strategies of a game with full support public monitoring is robust to all perturbations of the monitoring structure towards private monitoring (the case of almost-public monitoring), while strict equilibria in unbounded-recall strategies are typically not robust. We prove that the perfect-monitoring folk theorem continues to hold when attention is restricted to strategies with bounded recall and the equilibrium is essentially required to be strict. The general result uses calendar time in an integral way in the construction of the strategy profile. If the players' action spaces are sufficiently rich, then the strategy profile can be chosen to be independent of calendar time. Either result can then be used to prove a folk theorem for repeated games with almost-perfect almost-public monitoring.
Subjects: 
Repeated games
bounded recall strategies
folk theorem
imperfect monitoring
JEL: 
C72
C73
Document Type: 
Working Paper

Files in This Item:
File
Size
261.83 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.