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Identification of payoffs in repeated games

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  • Lee, Byung Soo
  • Stewart, Colin

Abstract

In one-shot games, an analyst who knows the best response correspondence can only make limited inferences about the players' payoffs. In repeated games with full monitoring, this is not true: we show that, under a weak condition, if the game is repeated sufficiently many times and players are sufficiently patient, the best response correspondence completely determines the payoffs (up to positive affine transformations).

Suggested Citation

  • Lee, Byung Soo & Stewart, Colin, 2016. "Identification of payoffs in repeated games," Games and Economic Behavior, Elsevier, vol. 99(C), pages 82-88.
    • Handle: RePEc:eee:gamebe:v:99:y:2016:i:c:p:82-88
    DOI: 10.1016/j.geb.2016.07.004
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    References listed on IDEAS

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    5. Ray, Indrajit & Snyder, Susan, 2013. "Observable implications of Nash and subgame-perfect behavior in extensive games," Journal of Mathematical Economics, Elsevier, vol. 49(6), pages 471-477.
    6. Abito, Jose Miguel, 2015. "How much can we identify from repeated games?," MPRA Paper 66378, University Library of Munich, Germany.
    7. Terri Kneeland, 2015. "Identifying Higher‐Order Rationality," Econometrica, Econometric Society, vol. 83(5), pages 2065-2079, September.
    8. Sprumont, Yves, 2000. "On the Testable Implications of Collective Choice Theories," Journal of Economic Theory, Elsevier, vol. 93(2), pages 205-232, August.
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    11. repec:mpr:mprres:7497 is not listed on IDEAS
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    Cited by:

    1. Abito, Jose Miguel & Chen, Cuicui, 2023. "A partial identification framework for dynamic games," International Journal of Industrial Organization, Elsevier, vol. 87(C).
    2. Jose Miguel Abito & Cuicui Chen, 2021. "How much can we identify from repeated games?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1212-1222.

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    More about this item

    Keywords

    Payoff identification; Best-response equivalence; Repeated games;
    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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