Monitoring versus Discounting in Repeated Games

S-Tier
Journal: Econometrica
Year: 2023
Volume: 91
Issue: 5
Pages: 1727-1761

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We study how discounting and monitoring jointly determine whether cooperation is possible in repeated games with imperfect (public or private) monitoring. Our main result provides a simple bound on the strength of players' incentives as a function of discounting, monitoring precision, and on‐path payoff variance. We show that the bound is tight in the low‐discounting/low‐monitoring double limit, by establishing a public‐monitoring folk theorem where the discount factor and the monitoring structure can vary simultaneously.

Technical Details

RePEc Handle
repec:wly:emetrp:v:91:y:2023:i:5:p:1727-1761
Journal Field
General
Author Count
2
Added to Database
2026-01-29