A note on "Necessary and sufficient conditions for the perfect finite horizon folk theorem" : [Econometrica, 63 (2): 425-430, 1995.]

Smith (1995) presented a necessary and sufficient condition for the finite- horizon perfect folk theorem. In the proof of this result, the author constructed a family of five-phase strategy profiles to approach feasible and individually rational payoff vec- tors of the stage-game. These strategy profiles are not subgame perfect Nash equilibria of the finitely repeated game. I illustrate this fact with a counter-example. However, the characterization of attainable payoff vectors by Smith remains true. I provide an alternative proof.