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Communication in repeated games with private monitoring. (English) Zbl 0871.90134

Summary: The paper considers repeated games where each player can be observed by only a subset of the other players, and where players can make public announcements about the behavior of the players they observed. We address the following question: What is the minimal level of observability that is required to obtain efficient outcomes? The main result is that the limit set of sequential equilibrium payoffs, when the discount factor tends to one, contains the set of individual rational payoffs whenever each player is observed by at least two or other players.

MSC:

91A20 Multistage and repeated games
91A28 Signaling and communication in game theory
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