Coordination Failure in Repeated Games with Private Monitoring

  title={Coordination Failure in Repeated Games with Private Monitoring},
  author={Takuo Sugaya and Satoru Takahashi},
Players coordinate continuation play in repeated games with public monitoring. We investigate the robustness of such equilibrium behavior with respect to ex-ante small private-monitoring perturbations. We show that with full support of public signals, no perfect public equilibrium is robust if it induces a “regular” 2×2 coordination game in the continuation play. This regularity condition is violated in all belief-free equilibria. Indeed, with an individual full rank condition, every interior… CONTINUE READING

Similar Papers

Loading similar papers…