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Volver The Repeated Prisoner's Dilemma in a Network

WPnull/10 The Repeated Prisoner's Dilemma in a Network
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  • Markus Kinateder (
    Facultad de Ciencias Económicas y Empresariales, Universidad de Navarra

Imperfect private monitoring in an infinitely repeated discounted Prisoners Dilemma played on a communication network is studied. Players observe their direct neighbors behavior only, but communicate strategically the repeated games history throughout the network. The delay in receiving this information requires the players to be more patient to sustain the same level of cooperation as in a complete network, although a Folk Theorem obtains when the players are patient enough. All equilibria under exogenously imposed truthtelling extend to strategic communication, and additional ones arise due to richer communication. There are equilibria in which a player lies. The flow of information is related with network centrality measures.

Classification JEL:C72, C73, D85

Keywords:Repeated Game, Prisoner's Dilemma, Imperfect Private Monitoring, Net-

Number of Pages:20

Creation Date:2010-04-16




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