TY - JOUR
T1 - Uniform folk theorems in repeated anonymous random matching games
AU - Deb, Joyee
AU - González-Díaz, Julio
AU - Renault, Jérôme
N1 - Publisher Copyright:
© 2016 Elsevier Inc.
PY - 2016/11/1
Y1 - 2016/11/1
N2 - We study infinitely repeated anonymous random matching games played by communities of players, who only observe the outcomes of their own matches. It is well known that cooperation can be sustained in equilibrium for the prisoner's dilemma, but little is known beyond this game. We study a new equilibrium concept, strongly uniform equilibrium (SUE), which refines uniform equilibrium (UE) and has additional properties. We establish folk theorems for general games and arbitrary number of communities. We extend the results to a setting with imperfect private monitoring, for the case of two communities. We also show that it is possible for some players to get equilibrium payoffs that are outside the set of individually rational and feasible payoffs of the stage game. As a by-product of our analysis, we prove that, in general repeated games with finite players, actions, and signals, the sets of UE and SUE payoffs coincide.
AB - We study infinitely repeated anonymous random matching games played by communities of players, who only observe the outcomes of their own matches. It is well known that cooperation can be sustained in equilibrium for the prisoner's dilemma, but little is known beyond this game. We study a new equilibrium concept, strongly uniform equilibrium (SUE), which refines uniform equilibrium (UE) and has additional properties. We establish folk theorems for general games and arbitrary number of communities. We extend the results to a setting with imperfect private monitoring, for the case of two communities. We also show that it is possible for some players to get equilibrium payoffs that are outside the set of individually rational and feasible payoffs of the stage game. As a by-product of our analysis, we prove that, in general repeated games with finite players, actions, and signals, the sets of UE and SUE payoffs coincide.
KW - Anonymous random matching
KW - Repeated games
KW - Uniform equilibria
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U2 - 10.1016/j.geb.2016.08.006
DO - 10.1016/j.geb.2016.08.006
M3 - Article
AN - SCOPUS:84988735060
SN - 0899-8256
VL - 100
SP - 1
EP - 23
JO - Games and Economic Behavior
JF - Games and Economic Behavior
ER -