Aoyagi, Masaki; Fréchette, Guillaume - In: Journal of Economic Theory 144 (2009) 3, pp. 1135-1165
This paper uses laboratory experiments to test the implications of the theory of repeated games on equilibrium payoffs and estimate strategies in an infinitely repeated prisoners' dilemma game with imperfect public monitoring. We find that subjects' payoffs (i) decrease as noise increases, and...