This paper studies contagious equilibrium in infinitely repeated matching games. The innovation is to identify a key statistic of contagious punishment that, used together with a recursive formulation, generates tractable closed-form expressions for continuation payoffs, off equilibrium. This allows a transparent characterization of the dynamic incentives created by contagious punishment schemes.
Camera, G., Gioffré, A. (2014). A tractable analysis of contagious equilibria. JOURNAL OF MATHEMATICAL ECONOMICS, 50(1), 290-300 [10.1016/j.jmateco.2013.07.003].
A tractable analysis of contagious equilibria
Camera, Gabriele
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2014
Abstract
This paper studies contagious equilibrium in infinitely repeated matching games. The innovation is to identify a key statistic of contagious punishment that, used together with a recursive formulation, generates tractable closed-form expressions for continuation payoffs, off equilibrium. This allows a transparent characterization of the dynamic incentives created by contagious punishment schemes.File in questo prodotto:
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