The folk theorem revisited

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

2 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)321-332
Journal / PublicationEconomic Theory
Volume27
Issue number2
Publication statusPublished - Feb 2006
Externally publishedYes

Abstract

This paper develops a simple "instant-response" model of strategic behavior where players can react instantly to changing circumstances, but at the same time face some inertia after changing action. The framework is used to reconsider the folk theorem and, in particular, the role of the key condition of dimensionality. In contrast to the discounted case in discrete time, here low dimensionality may help support equilibria because it is more difficult for a potential deviator or punisher to defect beneficially.

Research Area(s)

  • Folk theorem, Instant response

Citation Format(s)

The folk theorem revisited. / Bergin, James.

In: Economic Theory, Vol. 27, No. 2, 02.2006, p. 321-332.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review