Impermanent types and permanent reputations
Impermanent types and permanent reputations — Journal of Economic Theory, 147: 162-178, 2012
Abstract
We study the impact of unobservable stochastic replacements for the long-run player in the classical reputation model with a long-run player and a series of short-run players. We provide explicit lower bounds on the Nash equilibrium payoffs of a long-run player, both ex-ante and following any positive probability history. Under general conditions on the convergence rates of the discount factor to one and of the rate of replacement to zero, both bounds converge to the Stackelberg payoff if the type space is sufficiently rich. These limiting conditions hold in particular if the game is played very frequently.
Journal of Economic Theory, 147: 162-178, 2012
Citation
BibTeX citation:
@article{gossner2012,
author = {Gossner, Olivier and Ekmekci, Mehmet and Wilson, Andrea},
title = {Impermanent Types and Permanent Reputations},
journal = {Journal of Economic Theory},
date = {2012},
url = {https://gossner.me/papers/impermanent-types-and-permanent-reputations.html},
langid = {en},
abstract = {We study the impact of unobservable stochastic
replacements for the long-run player in the classical reputation
model with a long-run player and a series of short-run players. We
provide explicit lower bounds on the Nash equilibrium payoffs of a
long-run player, both ex-ante and following any positive probability
history. Under general conditions on the convergence rates of the
discount factor to one and of the rate of replacement to zero, both
bounds converge to the Stackelberg payoff if the type space is
sufficiently rich. These limiting conditions hold in particular if
the game is played very frequently.}
}
For attribution, please cite this work as:
Gossner, Olivier, Mehmet Ekmekci, and Andrea Wilson. 2012.
“Impermanent Types and Permanent Reputations.” Journal
of Economic Theory. https://gossner.me/papers/impermanent-types-and-permanent-reputations.html.