Instability of Equilibria with Imperfect Private Monitoring

Yuval Heller
2015 Social Science Research Network  
Various papers have presented folk-theorem results that yield efficiency in the repeated Prisoner's Dilemma with imperfect private monitoring. I present a mild refinement that requires robustness against small perturbations in the behavior of potential opponents, and I show that only defection satisfies this refinement among all the existing equilibria in the literature.
doi:10.2139/ssrn.2608216 fatcat:izxf4tv3crh33hlc7qji3ze3oy