Repeated games with almost-public monitoring (Q1604523)

The authors investigate repeated games with imperfect public monitoring. In this games the players can use public signals to coordinate their behavior, and thus support cooperative outcomes, but with private monitoring, such coordination may no longer be possible. Even though grim trigger is a Perfect Public Equilibrium (PPE) in games with public monitoring is often fails to be an equilibrium in arbitrarily close games with private monitoring. If a PPE has player's behavior conditioned only on finite histories, then it induces an equilibrium in all close-by games with private monitoring. This implies a folk theorem for repeated games with almost-public almost-perfect monitoring.