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 language | English |
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Pages (from-to) | 357-359 |
Journal | Economics Letters |
Volume | 99 |
Issue number | 2 |
DOIs | |
Publication status | Published - 1 Jan 2008 |
Keywords
- Folk Theorem
- full dimensionality