Goldlücke, Susanne; Kranz, Sebastian - In: Journal of Economic Theory 147 (2012) 3, pp. 1191-1221
This paper studies infinitely repeated games with imperfect public monitoring and the possibility of monetary transfers. It is shown that all public perfect equilibrium payoffs can be implemented with a simple class of stationary equilibria that use stick-and-carrot punishments. A fast algorithm...