Theoretical Economics
Journal of the Econometric Society
Edited by: Federico Echenique • ISSN (e): 1555-7561 • ISSN (print): 1933-6837
Theoretical Economics: Jul, 2020, Volume 15, Issue 3
Common learning and cooperation in repeated games
https://doi.org/10.3982/TE3820
p. 1175-1219
Takuo Sugaya, Yuichi Yamamoto
We study repeated games in which players learn the unknown state of the world by observing a sequence of noisy private signals. We find that for generic signal distributions, the folk theorem obtains using ex-post equilibria. In our equilibria, players commonly learn the state, that is, the state becomes asymptotic common knowledge.
