Nash and perfect equilibria of discounted repeated games (Q2641232)

The ``perfect Folk Theorem'' for discounted repeated games establishes that the sets of Nash and subgame-perfect equilibrium payoffs are equal in the limit as the discount factor \(\delta\) tends to one. We provide conditions under which the two sets coincide before the limit is reached. That is, we show how to compute \({\underline \delta}\) such that the Nash and perfect equilibrium payoffs of the \(\delta\)-discounted game are identical for all \(\delta >{\underline \delta}\).