Article ID Journal Published Year Pages File Type
957389 Journal of Economic Theory 2012 31 Pages PDF
Abstract

This paper studies infinitely repeated games with imperfect public monitoring and the possibility of monetary transfers. It is shown that all public perfect equilibrium payoffs can be implemented with a simple class of stationary equilibria that use stick-and-carrot punishments. A fast algorithm is developed that exactly computes the set of pure strategies equilibrium payoffs for all discount factors.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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