Abstract
This paper presents an example where the set of subgame-perfect equilibrium payoffs of the infinitely repeated game without public randomization is not convex, no matter how large the discount factor is. Also, the set of pure-strategy equilibrium payoffs is not monotonic with respect to the discount factor in this example. These results are in sharp contrast to the fact that the equilibrium payoff set is convex and monotonic if public randomization is available.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
