Takahashi (2010) [12] proves a folk theorem in an environment where a continuum of players are randomly matched in each period to play the prisoner's dilemma with a different partner. A key assumption there is that a player can observe her partner's past play without any cost, while she cannot...

We study the infinitely repeated prisonerʼs dilemma with the option to maintain or to quit relationships. We show that if agents imitate successful strategies infrequently, defection is not dynamically stable and cooperation emerges regardless of the initial distribution of strategies.

We study an infinite horizon game in which pairs of players connected in a network are randomly matched to bargain over a unit surplus. Players who reach agreement are removed from the network without replacement. The global logic of efficient matchings and the local nature of bargaining, in...