Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Mar, 2006, Volume 74, Issue 2

Efficiency in Repeated Games Revisited: The Role of Private Strategies

https://doi.org/10.1111/j.1468-0262.2006.00669.x
p. 499-519

Michihiro Kandori, Ichiro Obara

Most theoretical or applied research on repeated games with imperfect monitoring has focused on : strategies that depend solely on the history of publicly observable signals. This paper sheds light on the role of : strategies that depend not only on public signals, but also on players' own actions in the past. Our main finding is that players can sometimes make better use of information by using private strategies and that . Our equilibrium private strategy for repeated prisoners' dilemma games consists of two states and has the property that each player's optimal strategy is independent of the other player's state.


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Supplemental Material

On Example 2 in ?Efficiency in Repeated Games Revisited: The Role of Private Strategies?

We provide technical details of the results in Example 2 in ?Efficiency in Repeated Games Revisited: The Role of Private Strategies?.

On Example 2 in ?Efficiency in Repeated Games Revisited: The Role of Private Strategies?

We provide technical details of the results in Example 2 in ?Efficiency in Repeated Games Revisited: The Role of Private Strategies?.