Weakly Belief-Free Equilibria in Repeated Games with Private Monitoring
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Economic Theory Workshop (2005-2010)
University of Pennsylvania
3718 Locust Walk
395 McNeil
395 McNeil
Philadelphia, PA
United States
Repeated games with imperfect private monitoring have a wide
range of applications, but a complete characterization of all equilibria in this class of games has yet to be obtained. The existing literature has identified a relatively tractable subset of equilibria. The present
paper introduces the notion of weakly belief-free equilibria for repeated games with imperfect private monitoring. This is a tractable class which subsumes, as a special case, a major part of the existing work(the belief-free equilibria), and it is shown that this class can outperform
(in terms of efficiency) the equilibria identified by previous work.
For more information, contact Jing Li.