A folk theorem for repeated games played on a network


Games and Economic Behavior

novembre 2012, vol. 76, n°2, pp.711-737

Départements : Economie et Sciences de la décision

Mots clés : Repeated gamesImperfect monitoringNetworksFolk theoremCommunication protocols

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 conditionon the network for a Nash folk theorem to hold, for any such payoff function