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A folk theorem for repeated games played on a network

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  • Laclau, Marie

Abstract

I consider repeated games on a network where players interact and communicate with their neighbors. At each stage, players choose actions and exchange private messages with their neighbors. The payoff of a player depends only on his own action and on the actions of his neighbors. At the end of each stage, a player is only informed of his payoff and of the messages he received from his neighbors. Payoffs are assumed to be sensitive to unilateral deviations. The main result is to establish a necessary and sufficient condition on the network for a Nash folk theorem to hold, for any such payoff function.

Suggested Citation

  • Laclau, Marie, 2012. "A folk theorem for repeated games played on a network," Games and Economic Behavior, Elsevier, vol. 76(2), pages 711-737.
    • Handle: RePEc:eee:gamebe:v:76:y:2012:i:2:p:711-737
    DOI: 10.1016/j.geb.2012.08.008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Laclau, M., 2013. "Repeated games with local monitoring and private communication," Economics Letters, Elsevier, vol. 120(2), pages 332-337.
    2. Joyee Deb & Takuo Sugaya & Alexander Wolitzky, 2020. "The Folk Theorem in Repeated Games With Anonymous Random Matching," Econometrica, Econometric Society, vol. 88(3), pages 917-964, May.
    3. Fainmesser, Itay P. & Goldberg, David A., 2018. "Cooperation in partly observable networked markets," Games and Economic Behavior, Elsevier, vol. 107(C), pages 220-237.
    4. Marie Laclau & Ludovic Renou & Xavier Venel, 2020. "Robust communication on networks," Papers 2007.00457, arXiv.org, revised Oct 2020.
    5. Laclau, M., 2014. "Communication in repeated network games with imperfect monitoring," Games and Economic Behavior, Elsevier, vol. 87(C), pages 136-160.
    6. Somayeh Kokabisaghi & Eric J Pauwels & Andre B Dorsman, 2019. "To snipe or not to snipe, that is the question! Transitions in sniping behaviour among competing algorithmic traders," Papers 1912.04012, arXiv.org, revised Sep 2020.
    7. Marie Laclau & Ludovic Renou & Xavier Venel, 2024. "Communication on networks and strong reliability," Working Papers hal-03099678, HAL.

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    More about this item

    Keywords

    Repeated games; Imperfect monitoring; Networks; Folk theorem; Communication protocols;
    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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