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Bayesian repeated games and reputation

Author

Listed:
  • Antoine Salomon

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

  • Francoise Forges

    (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract
We consider two-person undiscounted and discounted infinitely repeated games in which every player privately knows his own payoffs (private values). Under a further assumption (existence of uniform punishment strategies), the Nash equilibria of the Bayesian infinitely repeated game without discounting are payoff-equivalent to tractable, completely revealing, equilibria. This characterization does not apply to discounted games with sufficiently patient players. We show that in a class of public good games, the set of Nash equilibrium payoffs of the undiscounted game can be empty, while limit (perfect Bayesian) Nash equilibrium payoffs of the discounted game, as players become increasingly patient, do exist. These equilibria share some features with the ones of two-sided reputation models.

Suggested Citation

  • Antoine Salomon & Francoise Forges, 2015. "Bayesian repeated games and reputation," Post-Print hal-01252921, HAL.
    • Handle: RePEc:hal:journl:hal-01252921
    DOI: 10.1016/j.jet.2015.05.014
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    References listed on IDEAS

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    Cited by:

    1. Françoise Forges & Ulrich Horst & Antoine Salomon, 2016. "Feasibility and individual rationality in two-person Bayesian games," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(1), pages 11-36, March.
    2. Lucas Pahl, 2021. "Information Spillover in Multiple Zero-sum Games," Papers 2111.01647, arXiv.org, revised Mar 2023.

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    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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