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Limits of correlation in repeated games with bounded memory

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  • Bavly, Gilad
  • Peretz, Ron

Abstract

We study repeated games in which each player i is restricted to (mixtures of) strategies that can recall up to ki stages of history. Characterizing the set of equilibrium payoffs boils down to identifying the individually rational level (“punishment level”) of each player.

Suggested Citation

  • Bavly, Gilad & Peretz, Ron, 2019. "Limits of correlation in repeated games with bounded memory," Games and Economic Behavior, Elsevier, vol. 115(C), pages 131-145.
    • Handle: RePEc:eee:gamebe:v:115:y:2019:i:c:p:131-145
    DOI: 10.1016/j.geb.2019.03.003
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    References listed on IDEAS

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    12. Peretz, Ron, 2012. "The strategic value of recall," Games and Economic Behavior, Elsevier, vol. 74(1), pages 332-351.
    13. Olivier Gossner & Tristan Tomala, 2007. "Secret Correlation in Repeated Games with Imperfect Monitoring," Post-Print hal-00487954, HAL.
    14. Ron Peretz, 2013. "Correlation through bounded recall strategies," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(4), pages 867-890, November.
    15. Abreu, Dilip & Rubinstein, Ariel, 1988. "The Structure of Nash Equilibrium in Repeated Games with Finite Automata," Econometrica, Econometric Society, vol. 56(6), pages 1259-1281, November.
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    Cited by:

    1. Halpern, Joseph Y. & Pass, Rafael & Seeman, Lior, 2019. "The truth behind the myth of the Folk theorem," Games and Economic Behavior, Elsevier, vol. 117(C), pages 479-498.

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    More about this item

    Keywords

    Repeated games; Bounded complexity; Equilibrium payoffs; Bounded recall; Finite automata; Concealed correlation;
    All these keywords.

    JEL classification:

    • 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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