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the equilibrium payoff of the long-lived player (demonstrating ex ante reputation effects) and to show that this lower … bound is asymptotically irrelevant under imperfect monitoring (demonstrating the impermanence of reputation effects). The … chapter continues by examining the (necessarily weaker) reputation results that can be established for the case of two long …
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We study learning with bounded memory in zero-sum repeated games with one-sided incomplete information. The uninformed player has only a fixed number of memory states available. His strategy is to choose a transition rule from state to state, and an action rule, which is a map from each memory...
Persistent link: https://www.econbiz.de/10010931201
A repeated game with private monitoring is “close” to a repeated game with public monitoring (or perfect monitoring) when (i) the expected payoff structures are close and (ii) the informational structures are close in the sense that private signals in the private monitoring game can be...
Persistent link: https://www.econbiz.de/10011043051
We analyze a toy class of two-player repeated games with two-sided incomplete information. In our model, two players are facing independent decision problems and each of them holds information that is potentially valuable to the other player. We study to what extent, and how, information can be...
Persistent link: https://www.econbiz.de/10011049786
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We model a reputation game, in which a sequence of short-run players chooses if to interact with a long-run player …
Persistent link: https://www.econbiz.de/10010906382
costs when the policy maker is subject to reputation concerns. Conservative institutions that thwart beneficial reform may …
Persistent link: https://www.econbiz.de/10010744253
This paper demonstrates the theoretical foundation that underlies the willingness of rational arbitrageurs to delay and reinforce the speculative attack. The key assumptions are that there is a small probability that arbitrageurs are behavioral and never time the market of their own accord and...
Persistent link: https://www.econbiz.de/10010662403