Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150222
Authors: 
Abreu, Dilip
Sannikov, Yuliy
Year of Publication: 
2014
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 9 [Year:] 2014 [Issue:] 2 [Pages:] 313-338
Abstract: 
Consider repeated two-player games with perfect monitoring and discounting. We provide an algorithm that computes the set V* of payoff pairs of all pure-strategy subgame perfect equilibria with public randomization. The algorithm provides significant efficiency gains over the existing implementations of the algorithm from Abreu, Pearce and Stacchetti (1990). These efficiency gains arise from a better understanding of the manner in which extreme points of the equilibrium payoff set are generated. An important theoretical implication of our algorithm is that the set of extreme points E of V* is finite. Indeed,≤ 3where A is the set of action profiles of the stage game.
Subjects: 
Repeated games
perfect monitoring
computation
JEL: 
C63
C72
C73
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Article

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