A belief-based approach to the repeated prisoners' dilemma with asymmetric private monitoring

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 1
Pages: 402-420

Score contribution per author:

4.036 = (α=2.02 / 1 authors) × 2.0x A-tier

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

Abstract

This paper extends the belief-based approach to the repeated prisoners' dilemma with asymmetric private monitoring. We first find that the previous belief-based techniques [T. Sekiguchi, Efficiency in repeated prisoners' dilemma with private monitoring, J. Econ. Theory 76 (1997) 345-361; V. Bhaskar, I. Obara, Belief-based equilibria in the repeated prisoners' dilemma with private monitoring, J. Econ. Theory 102 (2002) 40-69] cannot succeed when players' private monitoring technologies are sufficiently different. We then modify the previous belief-based approach by letting the player with smaller observation errors always randomize between cooperate and defect along the cooperative path of the play. We show that with vanishing observation errors, efficiency and a folk theorem can be approximated using our modified belief-based strategies.

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:1:p:402-420
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25