Common Learning and Cooperation in Repeated Games
125 Pages Posted: 10 May 2019
Date Written: April 26, 2019
We study repeated games in which players learn the unknown state of the world by observing a sequence of noisy private signals. We find that for generic signal distributions, the folk theorem obtains using ex-post equilibria. In our equilibria, players commonly learn the state, that is, the state becomes asymptotic common knowledge.
Keywords: repeated game, private monitoring, incomplete information, ex-post equilibrium, individual learning
JEL Classification: C72, C73
Suggested Citation: Suggested Citation