The impact of monitoring in infinitely repeated games: Perfect, public, and private

Arbeitspapier

This paper uses a laboratory experiment to study the effect of a monitoring structure on the play of the infinitely repeated prisoner's dilemma. Keeping the stage game fixed, we examine the behavior of subjects when information about past actions is perfect (perfect monitoring), noisy but public (public monitoring), and noisy and private (private monitoring). We find that the subjects sustain cooperation in every treatment, but that their strategies differ substantially in the three treatments. Specifically, we observe that the strategies are more complex under public and private monitoring than under perfect monitoring. We also find that the strategies under private monitoring are more lenient than under perfect monitoring, and less forgiving than under public monitoring.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 942

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Stochastic and Dynamic Games; Evolutionary Games; Repeated Games ; Design of Experiments: Laboratory, Group Behavior
• Subject: infinitely repeated games ; monitoring ; perfect ; public ; private ; experiments

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Aoyagi, Masaki ; Bhaskar, V. ; Frechette, Guillaume R.
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/127071
• Last update: 10.03.2025, 11:44 AM CET