Sophisticated reasoning, learning, and equilibrium in repeated games with imperfect feedback

B-Tier
Journal: Economic Theory
Year: 2025
Volume: 80
Issue: 2
Pages: 421-464

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract We analyze the infinite repetition with imperfect feedback of a simultaneous or sequential game, assuming that players are strategically sophisticated—but impatient—expected-utility maximizers. Sophisticated strategic reasoning in the repeated game is combined with belief updating to provide a foundation for a refinement of self-confirming equilibrium. In particular, we model strategic sophistication as rationality and common strong belief in rationality. Then, we combine belief updating and sophisticated reasoning to provide sufficient conditions for a kind of learning—that is, the ability, in the limit, to exactly forecast the sequence of future observations—thus showing that impatient agents end up playing a sequence of self-confirming equilibria in strongly rationalizable conjectures of the one-period game.

Technical Details

RePEc Handle
repec:spr:joecth:v:80:y:2025:i:2:d:10.1007_s00199-024-01588-3
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24