We introduce a “dynamic non-equivalent utilities” (DNEU) condition and the notion of dynamic player-specific punishments for a general repeated game with unequal discounting, both naturally generalizing the stationary counterparts in Abreu et al. (1994). We show that if the DNEU condition,...

The e-mail game in Rubinstein (1989) shows that types with arbitrarily close higher-order beliefs may differ substantially in strategic behaviors. We define a notion called strategic discontinuity in arbitrary incomplete-information scenarios to generalize this e-mail game phenomenon. We show...

We present a new model for reasoning about the way information is shared among friends in a social network and the resulting ways in which the social network fragments. Our model formalizes the intuition that revealing personal information in social settings involves a trade-off between the...

The rational expectations equilibrium (REE), as introduced in Radner (1979) in a general equilibrium setting à la Arrow–Debreu–McKenzie, often fails to have desirable properties such as universal existence, incentive compatibility and efficiency. We resolve those problems by providing a new...

For some well-known games, such as the Travelerʼs Dilemma or the Centipede Game, traditional game-theoretic solution concepts—most notably Nash equilibrium—predict outcomes that are not consistent with empirical observations. We introduce a new solution concept, iterated regret...

We consider dynamic group formation in repeated n-person prisonerʼs dilemma. Agreements in coalitional bargaining are self-binding in that they are supported as subgame perfect equilibria of repeated games. Individuals are allowed to renegotiate the cooperating group agreement through a process...

Given the regularity condition on posteriors proposed in Lehrer and Samet (2011), we show that Lehrer and Sametʼs (2011) characterization of agreeing to agree in countable-information models cannot be extended to uncountable-information models. This answers an open question raised in Lehrer and...

We develop an approach to providing epistemic conditions for admissible behavior in games. Instead of using lexicographic beliefs to capture infinitely less likely conjectures, we postulate that players use tie-breaking sets to help decide among strategies that are outcome-equivalent given their...

This paper studies optimal auction design in a private value setting with endogenous information gathering. We develop a general framework for modeling information acquisition when a seller wants to sell an object to one of several potential buyers, who can each gather information about their...