Private Strategies in Finitely Repeated Games with Imperfect Public Monitoring
21 Pages Posted: 2 May 2001
Date Written: March 5, 2001
Abstract
We present three examples of finitely repeated games with public monitoring that have sequential equilibria in private strategies, i.e., strategies that depend on own past actions as well as public signals. Such private sequential equilibria can have features quite unlike those of the more familiar perfect public equilibria: (i) making a public signal less informative can create Pareto superior equilibrium outcomes; (ii) the equilibrium final-period action profile need not be a stage game equilibrium; and (iii) even if the stage game has a unique correlated (and hence Nash) equilibrium, the first-period action profile need not be a stage game equilibrium.
Keywords: Private strategies, repeated games, public perfect equilibria
JEL Classification: C72, C73
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Coordination Failure in Repeated Games with Almost-Public Monitoring
By George J. Mailath and Stephen Morris
-
Coordination Failure in Repeated Games with Almost-Public Monitoring, Second Version
By George J. Mailath and Stephen Morris
-
Folk Theorems with Bounded Recall Under (Almost) Perfect Monitoring
-
Limited Records and Reputation
By Qingmin Liu and Andrzej Skrzypacz
-
Folk Theorems with Bounded Recall under (Almost) Perfect Monitoring, Second Version
-
Folk Theorems with Bounded Recall Under (Almost) Perfect Monitoring, Third Version
-
Informational Smallness and Private Monitoring in Repeated Games
By Richard P. Mclean, Ichiro Obara, ...
-
Stochastic Discounting in Repeated Games: Awaiting the Almost Inevitable
By Mehmet Barlo and Can Urgun
-
A Foundation for Markov Equilibria with Finite Social Memory
By V. Bhaskar, George J. Mailath, ...