Munich Personal RePEc Archive

Instability of Belief-Free Equilibria

Heller, Yuval (2017): Instability of Belief-Free Equilibria. Forthcoming in: Journal of Economic Theory No. forthcoming

This is the latest version of this item.


Download (641kB) | Preview


Various papers have presented folk-theorem results that yield efficiency in the repeated Prisoner's Dilemma with imperfect private monitoring. I present a mild refinement that requires robustness against small perturbations in the behavior of potential opponents, and I show that only defection satisfies this refinement among all the existing equilibria in the literature.

Available Versions of this Item

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.