Econometrica: Nov 1995, Volume 63, Issue 6
Reputation and Commitment in Two-Person Repeated Games Without Discounting
Jonathan P. Thomas, Martin W. CrippsTwo-person repeated games with no discounting are considered where there is uncertainty about the type of the players. If there is a possibility that a player is an automaton committed to a particular pure or mixed stage-game action, then this provides a lower bound on the Nash equilibrium payoffs to a normal type of this player. The lower bound is the best available and is robust to the existence of other types. The results are extended to the case of two-sided uncertainty. This work extends Schmidt (1993) who analyzed the restricted class of conflicting interest games.
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