
Summary: We show that, in repeated common interest games without discounting, strong `perturbation implies efficiency' results require that the perturbations must include strategies that are `draconian' in the sense that they are prepared to punish to the maximum extent possible. Moreover, there is a draconian strategy whose presence in the perturbations guarantees that any equilibrium is efficient. We also argue that the results of \textit{L. Anderlini} and \textit{H. Sabourian} [Econometrica 63, No. 6, 1337--1369 (1995; Zbl 0841.90129)] using perturbation strategies that are cooperative (and hence nondraconian) are not due to computability per se but to the further restrictions they impose on allowable beliefs.
Cooperative games, common interests, repeated games, cooperation, computability, reputation, 2-person games, jel: jel:C73, jel: jel:D83, jel: jel:L14
Cooperative games, common interests, repeated games, cooperation, computability, reputation, 2-person games, jel: jel:C73, jel: jel:D83, jel: jel:L14
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 5 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Average | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Average | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
