Repeated games with present-biased preferences

A-Tier
Journal: Journal of Economic Theory
Year: 2008
Volume: 139
Issue: 1
Pages: 157-175

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

We study infinitely repeated games with perfect monitoring, where players have [beta]-[delta] preferences. We compute the continuation payoff set using recursive techniques and then characterize equilibrium payoffs. We then explore the cost of the present-time bias, producing comparative statics. Unless the minimax outcome is a Nash equilibrium of the stage game, the equilibrium payoff set is not monotonic in [beta] or [delta]. Finally, we show how the equilibrium payoff set is contained in that of a repeated game with smaller discount factor.

Technical Details

RePEc Handle
repec:eee:jetheo:v:139:y:2008:i:1:p:157-175
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25