| CIRJE-F-246 | "Less is More: An Observability Paradox in Repeated Games" |
| Author Name | Michihiro Kandori and Ichiro Obara |
| Date | November 2003 |
| Full Paper | PDF file@ |
| Remarks | Subsequently published in International Journal of Game Theory, 2006, Vol.34, No. 4, 475-493. |
| Abstract |
We present a repeated prisoners' dilemma game with imperfect public monitoring, which exhibits the following paradoxical feature: the equilibrium payoff set expands and asymptotically achieves full efficiency as the public signal becomes less sensitive to the hiden actions of the players. |
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