Show simple item record

dc.contributor.authorFudenberg, Drew
dc.contributor.authorLevine, David
dc.date.accessioned2009-08-05T19:21:54Z
dc.date.issued1994
dc.identifier.citationFudenberg, Drew and David K. Levine. 1994. Efficiency and observability with long-run and short-run players. Journal of Economic Theory 62, no. 1: 103-135.en
dc.identifier.issn0022-0531en
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:3203774
dc.description.abstractWe present a general algorithm for computing the limit, as δ → 1, of the set of payoffs of perfect public equilibria of repeated games with long-run and short-run players, allowing for the possibility that the players′ actions are not observable by their opponents. We illustrate the algorithm with two economic examples. In a simple partnership we show how to compute the equilibrium payoffs when the folk theorem fails. In an investment game, we show that two competing capitalists subject to moral hazard may both become worse off if their firms are merged and they split the profits from the merger. Finally, we show that with short-run players each long-run player′s highest equilibrium payoff is generally greater when their realized actions are observed.en
dc.description.sponsorshipEconomicsen
dc.language.isoen_USen
dc.publisherElsevieren
dc.relation.isversionofhttp://dx.doi.org/10.1006/jeth.1994.1006en
dash.licenseLAA
dc.titleEfficiency and Observability with Long-Run and Short-Run Playersen
dc.relation.journalJournal of Economic Theoryen
dash.depositing.authorFudenberg, Drew
dc.identifier.doi10.1006/jeth.1994.1006*
dash.contributor.affiliatedFudenberg, Drew


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record