On the full dimensionality assumption for the discounted Folk Theorem

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Abstract

A sufficient condition for the discounted Folk Theorem is that for every individually rational payoff vector u, there exists another individually rational payoff vector nu such that nu < u. We present an example of a full dimensional game where this property fails to be satisfied. Furthermore, we present a simple and direct proof that full dimensionality implies a weaker, but still sufficient property for the discounted Folk Theorem. (c) 2007 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)357-359
JournalEconomics Letters
Volume99
Issue number2
DOIs
Publication statusPublished - 1 Jan 2008

Keywords

  • Folk Theorem
  • full dimensionality

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