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.
- Folk Theorem
- full dimensionality