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Community enforcement using modal actions

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  • Jindani, Sam

Abstract

Can cooperation be sustained in large populations? This paper studies settings in which a large group of players is rematched at random each period. In such settings cooperation cannot be sustained by an equilibrium unless deviators are sanctioned by third parties. This is known as the problem of community enforcement. Previous analyses have relied on strong assumptions about what information players have access to. This paper shows that when players are matched with multiple partners in each period, it is possible to limit the amount of information required to support cooperative outcomes. The results hold for general games and for equilibria that are robust to noise.

Suggested Citation

  • Jindani, Sam, 2020. "Community enforcement using modal actions," Journal of Economic Theory, Elsevier, vol. 185(C).
    • Handle: RePEc:eee:jetheo:v:185:y:2020:i:c:s0022053118301248
    DOI: 10.1016/j.jet.2019.104972
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    References listed on IDEAS

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    More about this item

    Keywords

    Repeated games; Random matching; Community enforcement; Information transmission; Modal actions;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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