We study two-player discounted repeated games in which one player cannot monitor the other unless he pays a fixed amount. It is well known that in such a model the folk theorem holds when the monitoring cost is on the order of magnitude of the stage payoff. We analyze high frequency games in...

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...

I analyze the set of pure strategy subgame perfect Nash equilibria of any finitely repeated game with complete information and perfect monitoring. The main result is a complete characterization of the limit set, as the time horizon increases, of the set of pure strategy subgame perfect Nash...