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Reputation and perfection in repeated common interest games

By M.W. Cripps and J. Thomas

Abstract

We consider a wide class of repeated common interest games perturbed with one-sided incomplete information: one player (the informed player) might be a commitment type playing the Pareto dominant action. As discounting, which is assumed to be symmetric, and the prior probability of the commitment type go to zero, it is shown that the informed player can be held close to her minmax payoff even when perfection is imposed on the equilibrium

Year: 1997
DOI identifier: 10.1006/game.1997.0520
OAI identifier: oai:eprints.ucl.ac.uk.OAI2:16385
Provided by: UCL Discovery

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