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On the full dimensionality assumption for the discounted Folk Theorem

A sufficient condition for the discounted Folk Theorem is that for every individually rational payoff vector u, there exists another individually rational payoff vector v such that v < 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.
Year of publication:
2008
Authors: Carmona, Guilherme
Published in:
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 99.2008, 2, p. 357-359
Publisher: Elsevier
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10005307568
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