Theoretical Economics, Volume 15, Number 3 (July 2020)

Theoretical Economics 15 (2020), 1175–1219

Common learning and cooperation in repeated games

Takuo Sugaya, Yuichi Yamamoto


We study repeated games in which players learn the unknown state of the world by observing a sequence of noisy private signals. We find that for generic signal distributions, the folk theorem obtains using ex-post equilibria. In our equilibria, players commonly learn the state, that is, the state becomes asymptotic common knowledge.

Keywords: Repeated game, private monitoring, incomplete information, ex-post equilibrium, individual learning

JEL classification: C72, C73

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