Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/59624 
Year of Publication: 
2009
Series/Report no.: 
Discussion Paper No. 1506
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
Abstract: 
Previous work shows that reputation results may fail in repeated games between two long-run players with equal discount factors. We restrict attention to an infinitely repeated game where two players with equal discount factors play a simultaneous move stage game where actions of player 2 are imperfectly observed. The set of commitment types for player 1 is taken as any (countable) set of finite automata. In this context, for a restricted class of stage games, we provide a one sided reputation result. If player 1 is a particular commitment type with positive probability and player 2's actions are imperfectly observed, then player 1 receives his highest pay-off, compatible with individual rationality, in any Bayes-Nash equilibria, as agents become patient.
Subjects: 
Repeated Games
Reputation
Equal Discount Factor
Long-run Players
Imperfect Observation
Complicated Types
Finite Automaton
JEL: 
C73
D83
Document Type: 
Working Paper

Files in This Item:
File
Size
313.46 kB





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