Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150272
Authors: 
Zhang, Wenzhang
Chan, Jimmy H.
Year of Publication: 
2016
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 11 [Year:] 2016 [Issue:] 1 [Pages:] 53-87
Abstract: 
Side-payments are common in many long-term relationships. We show that when players can exchange side-payments, approximate efficiency is achievable in any repeated game with private monitoring and communication, so long as the players can observe their own payoffs and are sufficiently patient, the efficient stage-game outcome is unique, and the signal distribution has full support. Unlike existing results in the literature, our result does not require deviations be statistically detectable.
Subjects: 
Repeated games
private monitoring
communication
JEL: 
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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