CIRJE-F-491 "Weakly Belief-Free Equilibria in Repeated Games with Private Monitoring"
Author Name Kandori, Michihiro
Date April 2007
Full Paper PDF file
Remarks Revised in March 2009; subsequently published in Econometrica, Vol. 73, No. 3. 877-892 (2011 May).
Abstract

Repeated games with imperfect private monitoring have a wide range of applications, but a complete characterization of all equilibria in this class of games has yet to be obtained. The existing literature has identified a relatively tractable subset of equilibria. The present paper introduces the notion of weakly belief-free equilibria for repeated games with imperfect private monitoring. This is a tractable class which subsumes, as a special case, a major part of the existing literature (the belief-free equilibria), and it is shown that this class can outperform the equilibria identified by the previous work.