We study finitely repeated games where players can decide whether to monitor the other playersʼ actions or not every period. Monitoring is assumed to be costless and private. We compare our model with the standard one where the players automatically monitor each other. Since monitoring other...

The folk theorem literature has been relaxing the assumption on how much players know about each other's past action. Here we consider a general model where players can "buy" precise information. Every period, each player decides whether to pay a cost to accurately observe the actions chosen by...