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...

We study sequential equilibrium payoffs of a repeated game with local interaction and local monitoring. An undirected network determines both the interaction and the monitoring structure. When players do not discount the future, a sequentially rational Nash threats folk theorem holds without any...

We study competing-mechanism games under exclusive competition: principals first simultaneously post mechanisms, then agents simultaneously choose to participate and communicate with at most one principal. In this setting, which is common to competing-auction and competitive-search applications,...