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Weakly Belief‐Free Equilibria in Repeated Games With Private Monitoring

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  • Michihiro Kandori
Abstract
Repeated games with imperfect private monitoring have a wide range of applications, but a complete characterization of all equilibria in this class of games has yet to be obtained. The existing literature has identified a relatively tractable subset of equilibria. The present paper introduces the notion of weakly belief-free equilibria for repeated games with imperfect private monitoring. This is a tractable class which subsumes, as a special case, a major part of the existing literature (the belief-free equilibria), and it is shown that this class can outperform the equilibria identified by the previous work.
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Suggested Citation

  • Michihiro Kandori, 2011. "Weakly Belief‐Free Equilibria in Repeated Games With Private Monitoring," Econometrica, Econometric Society, vol. 79(3), pages 877-892, May.
    • Handle: RePEc:ecm:emetrp:v:79:y:2011:i:3:p:877-892
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    as
    1. Bhaskar, V. & van Damme, Eric, 2002. "Moral Hazard and Private Monitoring," Journal of Economic Theory, Elsevier, vol. 102(1), pages 16-39, January.
    2. Johannes Hörner & Wojciech Olszewski, 2006. "The Folk Theorem for Games with Private Almost-Perfect Monitoring," Econometrica, Econometric Society, vol. 74(6), pages 1499-1544, November.
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    Cited by:

    1. Heller, Yuval, 2015. "Instability of Equilibria with Imperfect Private Monitoring," MPRA Paper 64468, University Library of Munich, Germany.
    2. Yoo, Seung Han, 2014. "Learning a population distribution," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 188-201.
    3. repec:pra:mprapa:64485 is not listed on IDEAS
    4. Heller, Yuval, 2017. "Instability of belief-free equilibria," Journal of Economic Theory, Elsevier, vol. 168(C), pages 261-286.
    5. Ashkenazi-Golan, Galit & Lehrer, Ehud, 2019. "What you get is what you see: Cooperation in repeated games with observable payoffs," Journal of Economic Theory, Elsevier, vol. 181(C), pages 197-237.
    6. Mitri Kitti, 2013. "Conditional Markov equilibria in discounted dynamic games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 78(1), pages 77-100, August.
    7. Takuo Sugaya & Yuichi Yamamoto, 2019. "Common Learning and Cooperation in Repeated Games," PIER Working Paper Archive 19-008, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.

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