How Robust is the Folk Theorem with Imperfect Public Monitoring?

Joint with: Johannes Horner

In this paper, we prove that, under full rank, every perfect public equilibrium payoff (above some Nash equilibrium in the two-player case, and above the minmax payoff with more players) can be achieved with strategies that have

bounded memory. This result is then used to prove that a version of the folk theorem remains valid under private but almost-public monitoring.

For more information, contact Steve Matthews.