Research and Publications
Journal Articles
Folk Theorems for the Observable Implications of Repeated Games
1992, Theory and Decision
Eric Bennett Rasmusen
Abstract
The fact that infinitely repeated games have many different equilibrium outcomes is known as the Folk Theorem. Previous versions of the Folk Theorem have characterized only the payoffs of the game. This paper shows that over a finite portion of an infinitely repeated game, the concept of perfect equilibrium imposes virtually no restrictions on observable behavior. The Prisoner's Dilemma is presented as an example and discussed in detail.
Citation
Rasmusen, Eric Bennett (1992), "Folk Theorems for the Observable Implications of Repeated Games," Theory and Decision, Vol. 32, March, 147-164.
