Econometrica: May, 2011, Volume 79, Issue 3

Weakly Belief‐Free Equilibria in Repeated Games With Private Monitoring

https://doi.org/10.3982/ECTA8480
p. 877-892

Michihiro Kandori

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 literature (the belief‐free equilibria). It is shown that this class can outperform the equilibria identified by the previous work.

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