Communication equilibria in repeated games of imperfect private monitoring

Economics

Further details

This paper studies repeated games with imperfect private monitoring when there exists a third-party mediator who coordinates play by giving non-binding instructions to players on which action to take and by collecting their private information. The paper presents a Nash-threat folk theorem for a communication equilibrium based on such mediation when monitoring is jointly epsilon-perfect in the sense that every player is almost perfectly monitored collectively by a subset of other players.